Analyze the income statement of PQR Services for the fiscal year ending December 31, 2023, to assess its financial performance and efficiency ratios.

PQR Services Income Statement	Year Ended December 31, 2023
Revenue
Service Revenue	$800,000
Consulting Revenue	$200,000
Total Revenue	$1,000,000
Expenses
Cost of Services Provided	$500,000
Selling Expenses	$150,000
General and Administrative Expenses	$100,000
Depreciation Expense	$25,000
Interest Expense	$10,000
Income Tax Expense	$70,000
Total Expenses	$855,000
Net Income	$145,000

Questions:

1. Calculate the gross profit ratio and explain its significance in assessing the company’s financial performance.
2. Determine the operating expense ratio and discuss its implications for the company’s efficiency in managing operating costs.