*All %'s below are as a % of NET Sales Sales Price Per Uni 119.99 Annual Sales (Unit 1,500,000 10% Income Statement Gross Sales Discounts Net Sales Cost of Goods Sold Discounts/Refund: Gross Margin 65% Gross Margin 0 Payroll 25% Supplies 5% Utilities 2% Transaction Fees 2.50% Marketing 10% Administrative 5% % of Sales Payroll % of Sales Other Operating Expenses Supplies #DIV/0! #DIV/0! Corporate Overhea 25% Utilities Fees Depreciation 5% Marketing Admin Income Tax Rate 7.70% Total Operating Expenses 0 % of Sales #DIV/0! Operating Margin #DIV/0! Corp Overhead Depreciation Income Taxes Total Other Costs % of Sales #DIV/0! Net Income #DIV/0! % of Sales #DIV/0! Analysis Strengths of this Income Statement? Risks of the operating model? Areas they need to focus on cost reduction?