Sales McKenzie Sales, Limited Comparative Income Statement This Year $ 7,340,000 Last Year $ 5,578,400 3,508,000 2,070,400 Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses Selling expenses Total expenses Net operating income Interest expense Net income before taxes 4,670,000 2,670,000 1,393,000 1,075,000 711,500 612,500 2,104,500 1,687,500 565,500 104,000 382,900 86,000. $ 461,500 $ 296,900 Members of the company's board of directors are surprised to see that net income increased by only $164,600 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 (ie., 0.1234 should be entered as 12.3).) Selling expenses Sales Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses This Year Last Year % % % % 0.0 % 0.0 % % % % % Total selling and administrative expenses 0.0 % 0.0 % Net operating income 0.0 % 0.0 % Interest expense % % Net income before taxes 0.0 % 0.0 %