Sales McKenzie Sales, Limited Comparative Income Statement This Year $ 7,370,000 4,610,000 2,760,000 Last Year $ 5,601,200 3,516,000 2,085,200 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income. Interest expense Net income before taxes. 1,389,000 1,074,000 707,500 613,000 2,096,500 663,500 100,000 $ 563,500 1,687,000 398,200 90,000 $ 308,200 Members of the company's board of directors are surprised to see that net income increased by only $255,300 when sales increased by $1,768,800. 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).) Sales Cost of goods sold This Year Last Year % % % % % % Gross margin Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % % Interest expense % % Net income before taxes %