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: $4,000,000
• Gross Profit: $6,000,000
• Selling, General, and Administrative Expenses: $2,000,000
• Research and Development Expenses: $300,000
• Depreciation Expense: $400,000
• Interest Expense: $150,000
• Income Tax Expense: $700,000
• Net Income: $2,450,000

a. Calculate the Gross Profit Margin and discuss its role in assessing profitability. b. Determine the Operating Income and explain how it reflects the company’s operational efficiency. c. Analyze the effective tax rate and its impact on the company’s net income.