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The financial summary for GHI Ltd. for the year ending 2023 is as follows: Sales Revenue: $900,000 Manufacturing Costs: $540,000 Administrative Expenses: $120,000 Distribution Costs:
The financial summary for GHI Ltd. for the year ending 2023 is as follows:
- Sales Revenue: $900,000
- Manufacturing Costs: $540,000
- Administrative Expenses: $120,000
- Distribution Costs: $110,000
- Interest on Debt: $30,000
- Corporate Taxes: $50,000
Requirements:
- Prepare an income statement.
- Calculate the gross profit margin.
- Determine the operating profit margin.
- Compute the net profit margin.
- Evaluate the impact of a 10% increase in sales revenue on the net profit margin.
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