A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold This Year $ 7,340,000 4,620,000 Last Year $ 5,578,400 3,515,000 Gross margin 2,720,000 2,063,400 Selling and administrative expenses: 1,378,000 1,079,500 Administrative expenses 707,500 615,000 2,085,500 1,694,500 Interest expense 634,500 98,000 $ 536,500 368,900 92,000 Selling expenses Total expenses Net operating income Net income before taxes $ 276,900 Members of the company's board of directors are surprised to see that net income increased by only $259,600 when sales increase 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).) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses This Year Last Year 100.0 % 100.0 % 25.2% 35.8 % 100.0 %