Sales $7,310,000 4,790,000 2,520,000 $5,555,600 3,509,500 2,046,100 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense 1,384,000 708,500 1,074,500 611,500 1,686,000 360, 100 92,000 $ 268,100 2,092,500 427,500 102,000 Net income before taxes 325,500 Members of the company's board of directors are surprised to see that net income increased by only $57,400 when sales increased by $1,754,400. 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).) Last Year This Year Sales Cost of goods sold Gross margin Seling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses www Net operating income Interest expense Net income before taxes