PQR Ltd. has reported the following figures for 2023:

• Revenue: $500,000
• Cost of Goods Sold: $300,000
• Administrative Costs: $70,000
• Marketing Costs: $60,000
• Interest Expense: $15,000
• Income Tax: $25,000

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit.
3. Determine the operating income.
4. Compute the net income.
5. Evaluate the impact of a 10% increase in administrative costs on the operating income.