McKenzie Sales, Limited Comparative Income Statement This Year Sales $ 8,000,000 Cont of goods sold 4,984,000 Gross margin 3,016,000 Selling and administrative expenses Selling expenses 1,480,000 Administrative expenses 712,000 Total expenses 2,192,000 Net operating income 824,000 Interest expense 96,000 Net income before taxes $ 728,000 Last Year $ 6,000,000 3,516,000 2,484,000 1,092,000 618,000 1,710,000 774,000 84,000 $ 690,000 Members of the company's board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,000 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 % % 0.01% % 0.0 % 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 % 0.01% 0.01% ***** % % 0.0 % 0.0% % 0.01% 0.0 %