A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto McKenzie Sales, Ltd Comparative Income Statement This Year Last Year $7,360,000 $5,593,600 4,780,000 3,507,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 2,580,000 2,086,600 Selling expenses 1,375,000 1,075,500 708,500 Administrative expenses Total expenses Net operating income 612,500 2,083,500 1,688,000 398,600 496,500 96,000 Interest expense 87,000 Net income before taxes $ 400,500 $ 311,600 Members of the company's board of directors are surprised to see that net income increased by only $88,900 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).) Answer is complete but not entirely correct. This Year Last Year 100.0 % 636 % 36.4 1% 100.0 % Sales Cost of goods sold Gross margin Selling and administrative expenses 62.8 % 37.2 18.9 % 9.6 % 28.5 % 7.9 % Selling expenses 19.3 10.9 30.2 % Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % 7.0 % 1.60% 5.4 0 6.5 |%