A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales This Year $ 7,380,000 Last Year $5,608,800 Cost of goods sold Gross margin 4,720,000 2,660,000 3,511,500 Selling and administrative expenses: Administrative expenses 2,097,300 1,391,000 1,073,500 703,500 612,500 2,094,500 1,686,000 Selling expenses Total expenses Net operating income. Interest expense Net income before taxes 565,500 103,000 $ 462,500 411,300 90,000 $ 321,300 Members of the company's board of directors are surprised to see that net income increased by only $141,200 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).) Sales Cost of goods sold This Year Last Year % % % % % % Gross margin Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % % AL 2 of 6 www Next >