PQR Inc. has the following financial data for 2023:

• Total Revenue: $1,000,000
• Cost of Goods Sold: $600,000
• Operating Expenses: $200,000
• Interest Expense: $20,000
• Tax Expense: $40,000

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit margin.
3. Calculate the operating profit margin.
4. Calculate the net profit margin.
5. Analyze the effect of a 15% increase in operating expenses on the net profit margin.