Sales McKenzie Sales, Limited Comparative Income Statement Cost of goods sold Gross margin Selling and administrative expenses: This Year $ 7,310,000 4,720,000 2,590,000 1,372,000 708,500 22080,500 Last Year $ 5,555,600 3,515,000 2,040,600 1,079,500 609,000 1,688,500 309,500 98,000 $411,500 352,100 91.000 $261,100 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $150,400 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 (ie., 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 0.0 % 0.0 % 0.0 % 0.0 % Net operating income % 56 Interest expense 0.0 % 0.0% Net income before taxes Drou 2 of Next >