Develop a spreadsheet model to calculate the net income.

MasterTech is a new software company that develops and markets productivity software for municipal government applications. In developing their income statement, the following formulas are used:

gross profit = net sales – cost of sales

net operating profit = gross profit –

administrative expenses – selling expenses

net income before taxes = net operating

profit – interest expense

net income = net income before taxes – taxes

Net sales are expected to be . Cost of sales is estimated to be . Selling expenses have a fixed component that is estimated to be  and a variable component that is estimated to be 8% of net sales. Administrative expenses are . Interest expenses are . The company is taxed at a 50% rate. Develop a spreadsheet model to calculate the net income. Design your spreadsheet using good spreadsheet-engineering principles.

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