1. A company’s income statement for the fiscal year ending December 31, 2023, includes the following figures:
   • Revenue: $10,000,000
   • Cost of Goods Sold (COGS): $5,000,000
   • Selling, General, and Administrative Expenses (SG&A): $2,000,000
   • Research and Development Expenses (R&D): $400,000
   • Depreciation Expense: $300,000
   • Interest Expense: $150,000
   • Income Tax Expense: $600,000
   • Gain on Sale of Equipment: $75,000

Using the provided information, perform the following tasks:

• Calculate the Gross Profit and discuss its role in assessing the company’s production efficiency.
• Determine the Operating Income, considering SG&A and R&D expenses, and explain what this reveals about the company’s operational performance.