Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales This Year $7,350,000 Cost of goods sold 4,770,000 Last Year $ 5,586,000 3,508,000 Gross margin Selling and administrative expenses: Administrative expenses 2,580,000 2,078,000 1,400,000 705,000 1,075,000 613,000 2,105,000 1,688,000 475,000 390,000 104,000 87,000 $371,000 Selling expenses Total expenses Net operating income Interest expense Net income before taxes $303,000 Members of the company's board of directors are surprised to see that net income increased by only $68,000 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).)