ABC Construction Company is evaluating its CGS and administrative expenses:

• Requirements:
  • Calculate the Cost of Goods Sold for a major project:
    • Direct Materials: $500,000
    • Direct Labor: $300,000
    • Equipment Costs: $100,000
• Analyze SG&A expenses:
  • Office Rent: $50,000
  • Project Management Fees: $30,000
  • Legal and Permit Costs: $20,000

• Compute the Gross Profit Margin for the project.
• Discuss how SG&A impacts bidding strategies and project profitability.