UVW Enterprises has the following financial data for the year 2023:

• Net Sales: $850,000
• Cost of Goods Sold: $510,000
• Administrative Expenses: $120,000
• Marketing Costs: $100,000
• Loan Interest: $40,000
• Tax Provision: $30,000

Requirements:

1. Prepare an income statement.
2. Calculate the gross profit margin.
3. Determine the operating profit margin.
4. Compute the net profit margin.

Analyze the effect of a 5% reduction in cost of goods sold on the gross profit margin