A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Mckenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $ 7,380,000 $5,608,800 Cost of goods sold 4,730,000 3,510,000 Gross margin 2,650,000 2,098,800 Selling and administrative expenses: Selling expenses Administrative expenses 1,386,000 710,000 1,078,000 610,500 Total expenses 2,096,000 1,688,500 Net operating income Interest expense 554,000 99,000 1410,3001 87,000 Net income before taxes $ 455,000 $ 1323,3001 Members of the company's board of directors are surprised to see that net income increased by only $131,700 when sales increased by $1,771,200. 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).) Members of the company's board of directors are surprised to see that net income increased by only $131,700 when sales increased by $1,771,200. 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).) X Answer is complete but not entirely correct. This Year Last Year Sales 100.0 % 100.0 % 62.3 X % 62.5 % 37.7 % 37.5 % Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income 18.9 % 19.2 9.5 X % 10.8 X % 28.4 % 30.0 % 9.3 % 7.5 % Interest expense 1.4 X % 1.6 Net income before taxes 7.9 % 5.9 %