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

4,620,000

3,508,500

Gross margin

2,740,000

2,085,100

Selling and administrative expenses:

Selling expenses

1,397,000

1,074,000

Administrative expenses

705,000

610,000

Total expenses

2,102,000

1,684,000

Net operating income

638,000

401,100

Interest expense

102,000

85,000

Net income before taxes

$

536,000

$

316,100

Members of the companys board of directors are surprised to see that net income increased by only $219,900 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

0.0

%

0.0

%

Selling and administrative expenses:

Selling expenses

%

%

Administrative expenses

%

%

Total selling and administrative expenses

0.0

%

0.0

%

Net operating income

0.0

%

0.0

%

Interest expense

%

%

Net income before taxes

0.0

%

0.0

%