Sarved Help Save & Exit Graded Homework Submit Check my work 2 Exercise 14-1 Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $7,310,000 $5,555,600 Cost of goods sold 4,690,000 3,519,500 Gross margin 2,620,000 2,845,100 Selling and administrative expenses: Selling expenses 1,383,000 1,072,500 Administrative expenses 711,500 609,000 Total expenses 2,094,500 1,681,500 Net operating income 525,500 363,600 Interest expense 98,000 85,000 Net income before taxes $ 427,500 $ 278,600 nces Members of the company's board of directors are surprised to see that net income increased by only $148,900 when sales increased by $1,754,400 Required: to search DOLLS Members of the company's board of directors are surprised to see that net income increased by only $118,900 when sales increased by $1,754,400 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i... 0.1234 should be entered as 12.3).) This Year Last Year % % % % % Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before taxes % % % % % % % % % %