1. ABC Manufacturing Co. produces industrial equipment. Here are the financial figures for the year 2023:

Ledgers (in $)	Amount
Direct Materials Used	4,500,000
Direct Labor Costs	3,200,000
Manufacturing Overhead	2,000,000
Administrative Expenses	1,000,000
Sales Revenue	12,000,000

1. Requirements:
   • Prepare ABC Manufacturing Co.'s income statement for the year ended December 31, 2023.
   • Calculate the Cost of Goods Manufactured (CGM) and Cost of Goods Sold (CGS).
   • Determine the Gross Profit Margin and Operating Income.
   • Analyze the impact of a 15% increase in direct labor costs on profitability.
   • Recommend cost-saving strategies to reduce manufacturing overhead by 10%.