MNO Inc. released the following financial data for 2023:

• Total Sales: $650,000
• Production Costs: $390,000
• Administrative Expenses: $80,000
• Selling Expenses: $75,000
• Interest Expense: $20,000
• Tax Expense: $25,000

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit margin.
3. Determine the operating profit margin.
4. Compute the net profit margin.
5. Analyze the effect of a 5% increase in production costs on the net profit.