A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,593,600 3,511,000 2,082,600 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,360,000 Cost of goods sold 4,630,000 Gross margin 2,730,000 Selling and administrative expenses: Selling expenses 1,380,000 Administrative expenses 707,000 Total expenses 2,087,000 Net operating income 643,000 Interest expense 98,000 Net income before taxes $ 545,000 1,079,000 612,000 1,691,000 391,600 90,000 $ 301,600 Members of the company's board of directors are surprised to see that net income increased by only $243,400 when sales increased by $1,766,400. 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 100.0 % 63.01% 37.0 % Last Year 100.0 % 62.8 % 37.2 % 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 18.7 % 9.6% 28.3 % 8.7 % 1.4% 7.3% 19.2 % 11.01% 30.2 % 7.01% 1.7 % 5.31%