This Year $7,370,000 4,770,000 2,600,000 Last Year $5,601,200 3,507,000 2,094,200 Sales 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 1,370,000 707,000 2,077,000 523,000 100,000 $ 423,000 1,077,000 613,000 1,690,000 404,200 90,000 $ 314,200 Members of the company's board of directors are surprised to see that net income increased by only $108,800 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).) Answer is complete but not entirely correct. Last Year This Year 100.0 % % 65.0 100.0 63.0 37.0 % 35.0 % % % X X Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 19.0 10.0 29.0 % % 19.0 % 11.0 X % 30.0 % 7.0 % 2.0 X % 6.0 % 1.0 X % 5.0 % 5.0