1. A company’s income statement for the fiscal year ending December 31, 2023, includes the following figures:

Item	Amount
Revenue	$7,500,000
Cost of Goods Sold (COGS)	$4,500,000
Selling, General, and Administrative Expenses (SG&A)	$1,500,000
Research and Development Expenses (R&D)	$300,000
Depreciation Expense	$200,000
Interest Expense	$100,000
Income Tax Expense	$400,000
Gain on Sale of Equipment	$50,000

1. Using the provided information, perform the following tasks: a. Calculate the Gross Profit and discuss its role in assessing the company’s production efficiency. b. Determine the Operating Income, considering SG&A and R&D expenses, and explain what this reveals about the company’s operational performance.