ABC Tech Solutions provides IT consulting services. Here are selected financial figures for the fiscal year 2023:

Ledgers:

• Consulting Fees Earned: $8,000,000
• Salaries and Benefits: $4,000,000
• Rent Expense: $500,000
• Advertising Expenses: $300,000

Requirements:

• Prepare ABC Tech Solutions' income statement for the year ended December 31, 2023.
• Calculate the Gross Profit Margin and Operating Expenses.
• Determine the Net Income after taxes using a tax rate of 25%.
• Discuss the impact of overhead costs on ABC Tech Solutions' profitability.