A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $7,340,000 $5,578,400 Cost of goods sold 4,710,000 3,511,000 Gross margin 2,630,000 2,067,400 Selling and administrative expenses: Selling expenses 1,374,000 1,082,000 Administrative expenses 710,000 613,000 Total expenses 2,084,000 1,695,000 Net operating income 546,000 372,400 Interest expense 97,000 93,000 Net income before taxes $ 449,000 $ 279,400 Members of the company's board of directors are surprised to see that net income increased by only $169,600 when sales increased by $1,761,600. 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 % % % % % % % % % % % %