The following are the financial details for MNO Ltd:

• Total Revenue: $900,000
• Sales Returns: $50,000
• Net Revenue: $850,000
• Cost of Goods Sold: $350,000
• Operating Expenses: $150,000
• Interest Expense: $15,000
• Tax Rate: 33%

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit.
3. Determine the earnings before tax.
4. Compute the net income after tax.
5. Analyze how a 5% increase in revenue would affect net income.