Sales Cost of goods sold McKenzie Sales, Limited. Comparative Income Statement This Year $ 7,340,000 4,650,000 Last Year $ 5,578,400 3,587,000 2,071,400 Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 2,690,000 1,377,000 1,072,500 710,500 615,500 2,087,500 1,688,000 602,500 383,400 99,000 85,000 $ 503,500 $ 298,400 Members of the company's board of directors are surprised to see that net income increased by only $205,100 when sales increased by $1,761,600. 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).) This Year Last Year Sales Cost of goods sold % % Gross margin 0.0 % 0.0 % Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income: Interest expense Net income before taxes % % % % 0.0 % 0.0 % 0.0 % 0.0 % % 0.0 % % 0.0 %