ABC Construction Company is preparing for a project review:

• Calculate Cost of Goods Sold (CGS):
  • Direct Materials: $500,000
  • Direct Labor: $300,000
  • Equipment Costs: $100,000

• Assess SG&A expenses:
  • Rent: $50,000
  • Project Management Fees: $30,000
  • Legal and Permit Costs: $20,000

• Compute Project Gross Margin.
• Discuss the impact of SG&A costs on bidding strategies.