A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,586,000 3,513,000 2,073,000 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,350,000 Cost of goods sold 4,690,000 Gross margin 2,660,000 Selling and administrative expenses: Selling expenses 1,387,000 Administrative expenses 704,500 Total expenses 2,091,500 Net operating income 568,500 Interest expense 97,000 Net income before taxes $ 471,500 1,072,000 615,500 1,687,500 385,500 91,000 294,500 $ Members of the company's board of directors are surprised to see that net income increased by only $177,000 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