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 company$$s board of directors is surprised to see net income increased by only $$263,600$ when sales increased by $$1,761,600.$

Required:

$1.$ Express each year's income statement in common$-$size percentages.