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STU Corporation has the following financial data for the year 2023: Net Sales: $500,000 Cost of Goods Sold: $300,000 Administrative Expenses: $50,000 Selling Expenses: $60,000

STU Corporation has the following financial data for the year 2023:

  • Net Sales: $500,000
  • Cost of Goods Sold: $300,000
  • Administrative Expenses: $50,000
  • Selling Expenses: $60,000
  • Interest Expense: $10,000
  • Tax Expense: $15,000

Requirements:

  1. Prepare an income statement.
  2. Calculate the gross profit margin.
  3. Calculate the operating profit margin.
  4. Compute the net profit margin.
  5. Analyze the impact of a 10% increase in sales on the net profit margin.

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