A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement

This Year

Last Year

Sales

$

7,380,000

$

5,608,800

Cost of goods sold

4,770,000

3,515,000

Gross margin

2,610,000

2,093,800

Selling and administrative expenses:

Selling expenses

1,394,000

1,076,500

Administrative expenses

707,000

613,500

Total expenses

2,101,000

1,690,000

Net operating income

509,000

403,800

Interest expense

96,000

92,000

Net income before taxes

$

413,000

$

311,800

Members of the companys board of directors are surprised to see that net income increased by only $101,200 when sales increased by $1,771,200.

Required:

1.

Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

	This Year		Last Year
Sales		%		%
Cost of goods sold		%		%
Gross margin	0.0	%	0.0	%
Selling and administrative expenses:
Selling expenses		%		%
Administrative expenses		%		%
Total selling and administrative expenses	0.0	%	0.0	%
Net operating income	0.0	%	0.0	%
Interest expense		%		%
Net income before taxes	0.0	%	0.0	%