A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,593,600 3,508,000 2,085,600 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,360,000 Cost of goods sold 4,660,000 Gross margin 2,700,000 Selling and administrative expenses: Selling expenses 1,397,000 Administrative expenses 706,000 Total expenses 2,103,000 Net operating income 597,000 Interest expense 101,000 Net income before taxes $ 496,000 1,081,000 613,000 1,694,000 391,600 87,000 $ 304,600 Members of the company's board of directors are surprised to see that net income increased by only $191,400 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 % % % % 0.0 % 0.0% % % 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 % % 0.0 % 0.0 % 0.0 % % 0.0 % % 0.0 % 0.0 %