A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,586,000 3,513,500 2,072,500 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,350,000 Cost of goods sold 4,610,000 Gross margin 2,740,000 Selling and administrative expenses: Selling expenses 1,381,000 Administrative expenses 702,500 Total expenses 2,083,500 Net operating income 656,500 Interest expense 103,000 Net income before taxes $ 553,500 1,080,000 611,500 1,691,500 381,000 89,000 $ 292,000 Members of the company's board of directors are surprised to see that net income increased by only $261,500 when sales increased by $1,764,000. 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 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % % % % % % % % % % % %