XYZ Software Solutions develops software applications. Financial figures for 2023 are provided below:

Ledgers (in $ millions)	Amount
Software Development Costs	8.5
Subscription Revenue	25.0
Marketing Expenses	3.0
General Administrative Expenses	1.5

Requirements:

• Prepare XYZ Software Solutions' income statement for the year ended December 31, 2023.
• Calculate the Gross Profit Margin and Operating Expenses.
• Determine the Net Income before taxes.
• Evaluate the impact of a 12% increase in subscription revenue on profitability.
• Recommend strategies to reduce software development costs by 15%.