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A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:
McKenzie Sales, Limited
Comparative Income Statement
This Year Last Year
Sales $ 7,340,000 $ 5,578,400
Cost of goods sold 4,600,0003,514,000
Gross margin 2,740,0002,064,400
Selling and administrative expenses:
Selling expenses 1,382,0001,077,500
Administrative expenses 712,000613,500
Total expenses 2,094,0001,691,000
Net operating income 646,000373,400
Interest expense 101,00092,000
Net income before taxes $ 545,000 $ 281,400
The companys board of directors is surprised to see net income increased by only $263,600 when sales increased by $1,761,600.
Required:
1. Express each year's income statement in common-size percentages.

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