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ABC Manufacturing Co. produces industrial machinery. For the year 2023, the company's financial data is as follows: Ledgers: Direct Materials Used: $2,000,000 Direct Labor Costs:
ABC Manufacturing Co. produces industrial machinery. For the year 2023, the company's financial data is as follows:
Ledgers:
- Direct Materials Used: $2,000,000
- Direct Labor Costs: $1,500,000
- Manufacturing Overhead: $800,000
- Administrative Expenses: $300,000
- Sales Revenue: $6,000,000
Requirements:
- Prepare ABC Manufacturing Co.'s income statement for the year ended December 31, 2023.
- Calculate the Cost of Goods Manufactured and Cost of Goods Sold.
- Determine the Gross Profit Margin and Net Income.
- Discuss strategies to improve profit margins by 15%.
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