Last Year $5,586,000 3,508,500 2,077,500 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $ 7,350,000 Cost of goods sold 4,630,000 Gross margin 2,720,000 Selling and administrative expenses : Selling expenses 1,397,000 Administrative expenses 702,500 Total expenses 2,099,500 Net operating income 620,500 Interest expense 98,000 Net income before taxes $ 522,500 1,080,500 610,000 1,690,500 387,000 93,000 $ 294,000 Members of the company's board of directors are surprised to see that net income increased by only $228,500 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).) This Year Last Year 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