A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Menzie Sales, Ltd. Comparative Income Statement This Year Sales $7,320,000 Cost of goods sold 4,660,000 Gross margin 2,660,000 Selling and administrative expenses: Selling expenses 1,398,000 Administrative expenses 706,000 Total expenses 2,104,000 Net operating income 556,000 Interest expense 96,000 Net income before taxes $ 460,000 Last Year $5,563,200 3.509,000 2,054,200 1,081,500 610,000 1,691,500 362, 700 94,000 $ 268, 700 Members of the company's board of directors are surprised to see that net income increased by only $191,300 when sales increased by $1,756,800, Required: This Year Last Year Sales % % 0.0 % % % 0.0 % % 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 % % % 0.0 % 0.0 % 0.0 % 0.0 % % % 0.0 % 0.0 %