$ 7,350,000 4,730,000 2,620,000 $ 5,586,000 3,514,500 2,071,500 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 1, 396,000 710,500 2,106,500 513,500 103,000 $ 410,500 1,080,000 612,500 1,692,500 379,000 92,000 $ 287,000 Members of the company's board of directors are surprised to see that net income increased by only $123,500 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).) Last Year This 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 % % % % % % % % % % % %