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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:

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

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