ABC Pharmaceuticals is reviewing its SG&A and factory overhead expenditures:

• Requirements:
  • Calculate SG&A expenses for the quarter:
    • Research and Development Costs: $1,000,000
    • Marketing and Sales Expenses: $500,000
    • Administrative Costs: $300,000
• Determine Factory Overhead:
  • Laboratory Equipment Maintenance: $100,000
  • Utilities: $50,000

• Assess the impact of SG&A on profitability metrics like EBITDA.
• Discuss strategies to control factory overhead without compromising research and development efforts.