20. MasterTech is a new software company that devel- ops and markets productivity software for municipal government applications. In developing their income statement, the following formulas are used: = gross profit net sales - cost of sales net operating profit gross profit administrative expenses - selling expenses net income before taxes = net operating profit - interest expense net income net income before taxes - taxes Net sales are expected to be $1,250,000. Cost of sales is estimated to be $300,000. Selling expenses have a fixed component that is estimated to be $90,000 and a variable component that is estimated to be 8% of net sales. Administrative expenses are $50,000. Interest expenses are $8,000. The company is taxed at a 50% rate. Develop a spreadsheet model to calcu- late the net income. Design your spreadsheet using good spreadsheet-engineering principles.