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 $ 7,370,000 4,760,000 Last Year $5,601,200 3,512,500 2,610,000 2,088,700 1,372,000 1,073,500 703,000 610,000 2,075,000 1,683,500 535,000 97,000 $ 438,000 405,200 89,000 $ 316,200 Members of the company's board of directors are surprised to see that net income increased by only $121,800 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).) 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 0.0 % 0.0 % Net operating income 0.0 % 0.0 % Interest expense Net income before taxes % 0.0 % 0.0 % %