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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,616,400 3,511,000 2,105,400 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,390,000 Cost of goods sold 4,700,000 Gross margin 2,690,000 Selling and administrative expenses: Selling expenses 1,389,000 Administrative expenses 707,000 Total expenses 2,096,000 Net operating income 594,000 Interest expense 97,000 Net income before taxes $ 497,000 1,081,000 608,000 1,689,000 416,400 93,000 $ 323,400 Members of the company's board of directors are surprised to see that net income increased by only $173,600 when sales increased by $1,773,600. 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).) 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).) Sales This Year 100.0 % 64.0 % | 36.0 % Last Year 100.0 % 63.0 % 37.0 % 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 19.01% 10.01% 29.0 % 7.0 % 1.0% 6.0 % 0.0 % 37.0 % 37.01