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McKenzie Sales, Limited Comparative Income Statement ...

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Accounting

McKenzie Sales, Limited Comparative Income Statement
This Year Last Year
Sales $ 7,340,000 $ 5,578,400
Cost of goods sold 4,610,000 3,510,500
Gross margin 2,730,000 2,067,900
Selling and administrative expenses:
Selling expenses 1,387,000 1,074,000
Administrative expenses 709,500 611,000
Total expenses 2,096,500 1,685,000
Net operating income 633,500 382,900
Interest expense 102,000 89,000
Net income before taxes $ 531,500 $ 293,900

Members of the companys board of directors are surprised to see that net income increased by only $237,600 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 (i.e., 0.1234 should be entered as 12.3).)

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