Develop a spreadsheet model to calculate the net income. Design your spreadsheet using good spreadsheet engineering principles.

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Master Tech 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: Net sales are expected to be $900,000. Cost of sales is estimated to be $540,000. Selling expenses has a fixed component that is estimated to be $90,000, and a variable component that is estimated to be 7% of net sales. Administrative expenses are $50,000. Interest expenses are $10,000. 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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