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

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

McKenzie Sales, Ltd. Comparative Income Statement
This Year Last Year
Sales $ 7,350,000 $ 5,586,000
Cost of goods sold 4,780,000 3,509,500
Gross margin 2,570,000 2,076,500
Selling and administrative expenses:
Selling expenses 1,394,000 1,076,000
Administrative expenses 706,000 611,500
Total expenses 2,100,000 1,687,500
Net operating income 470,000 389,000
Interest expense 100,000 89,000
Net income before taxes $ 370,000 $ 300,000

Members of the companys board of directors are surprised to see that net income increased by only $70,000 when sales increased by $1,764,000.

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).)

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