Gross margin Comparative Income Statement This Year Sales $ 7,370,000 Cost of goods sold 4,770,000 Last Year $5,601,200 3,510,500 2,600,000 2,090,700 Selling and administrative expenses: 1,380,000 1,079,000 707,000 611,000 2,087,000 1,690,000 513,000 400,700 103,000 $410,000 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 87,000 $ 313,700 Members of the company's board of directors are surprised to see that net income increased by only $96,300 when sales increased by $1,768,800. 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 Sales Cost of goods sold 100.0% 64.9% 100.0 % Gross margin 35.11 % 62.7% 37.3 % Selling and administrative expenses: Selling expenses 18.7 % 19.2% Administrative expenses 9.6% 10.9% Total selling and administrative expenses 28.3 % 30.1 % Net operating income 6.8 % Interest expense 1.4% 7.2 % 1.5%