A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
	This Year			Last Year
Sales	$	7,360,000		$	5,593,600
Cost of goods sold		4,680,000			3,510,000
Gross margin		2,680,000			2,083,600
Selling and administrative expenses:
Selling expenses		1,388,000			1,078,500
Administrative expenses		709,000			608,500
Total expenses		2,097,000			1,687,000
Net operating income		583,000			396,600
Interest expense		102,000			87,000
Net income before taxes	$	481,000		$	309,600

Members of the companys board of directors are surprised to see that net income increased by only $171,400 when sales increased by $1,766,400.

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).)

	This Year			Last Year
Sales		%		%
Cost of goods sold		%		%
Gross margin		%		%
Selling and administrative expenses:
Selling expenses		%		%
Administrative expenses		%		%
Total selling and administrative expenses		%		%
Net operating income		%		%
Interest expense		%		%
Net income before taxes		%		%