Sales	$	7,400,000		$	5,624,000
Cost of goods sold		4,720,000			3,508,500
Gross margin		2,680,000			2,115,500
Selling and administrative expenses:
Selling expenses		1,372,000			1,082,000
Administrative expenses		710,500			608,500
Total expenses		2,082,500			1,690,500
Net operating income		597,500			425,000
Interest expense		105,000			93,000
Net income before taxes	$	492,500		$	332,000

Members of the companys board of directors are surprised to see that net income increased by only $160,500 when sales increased by $1,776,000.

Required:

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