Data for MNO Services:

• Total Revenue: $900,000
• Sales Discounts: $18,000
• Returns: $12,000
• Net Sales: $870,000
• Cost of Goods Sold: $450,000
• Operating Expenses: $180,000
• Interest Expense: $9,000
• Tax Rate: 26%

Requirements:

1. Prepare an income statement.
2. Calculate the operating profit margin.
3. Determine the amount of taxes paid.
4. Analyze the effect of a 10% increase in operating expenses on net income.
5. Discuss the impact of interest expense on the company's net profit.