Question: ABC Manufacturing Inc. is analyzing its financial data for the year: Category Amount ($) Cost of Goods Manufactured - Direct Materials $500,000 - Direct Labor

  1. ABC Manufacturing Inc. is analyzing its financial data for the year:

Category

Amount ($)

Cost of Goods Manufactured


- Direct Materials

$500,000

- Direct Labor

$300,000

- Manufacturing Overhead

$200,000

SG&A Expenses


- Salaries

$150,000

- Marketing

$50,000

  1. Requirements:
    • Calculate the Cost of Goods Manufactured (CGM) for ABC Manufacturing Inc.
    • Determine the Gross Profit Margin.
    • Propose strategies to reduce manufacturing costs by 15% without affecting product quality.
    • Analyze the impact of cost reductions on overall profitability.

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