Members of the company's board of directors are surprised to see that net income increased by only $$237,700$ when sales increased

by $$1,771,200.$

Required:

Express each year's income statement in common$-$size percentages. $($Round your percentage answers to $1$ decimal place $($i$.$e$.,$

$0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).)$A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:

McKenzie Sales, Limited

Comparative Income Statement

This Year Last Year

Sales $ $7,380,000$ $ $5,608,800$

Cost of goods sold $4,640,0003,514,000$

Gross margin $2,740,0002,094,800$

Selling and administrative expenses:

Selling expenses $1,371,0001,072,500$

Administrative expenses $706,000615,000$

Total expenses $2,077,0001,687,500$

Net operating income $663,000407,300$

Interest expense $102,00084,000$

Net income before taxes $ $561,000$ $ $323,300$

Members of the company$$s board of directors are surprised to see that net income increased by only $$237,700$ when sales increased by $$1,771,200.$

Required:

$1.$ Express each year's income statement in common$-$size percentages.