McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,330,000 4,680,000 Last Year $ 5,570,800 3,514,500 2,056,300 2,650,000 1,380,000 1,079,500 709,500 614,000 2,089,500 560,500 104,000 $ 456,500 1,693,500 362,800 87,000 $ 275,800 Members of the company's board of directors are surprised to see that net income increased by only $180,700 when sales increased by $1,759,200. 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 0.0 % 0.0 % 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 %