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A companys 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,
- 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.
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