XYZ Motors is analyzing its cost structure for a new vehicle model:

• Calculate Cost of Goods Sold (CGS) for producing 1,000 units, with direct materials costs of $4,000,000, direct labor expenses totaling $2,000,000, and manufacturing overhead of $1,000,000.
• Evaluate SG&A expenses, including sales and marketing costs of $1,500,000 and administrative expenses amounting to $300,000.
• Determine the Contribution Margin per unit and propose strategies to reduce manufacturing overhead costs by 12% through lean manufacturing initiatives.
• Analyze the impact of reduced overhead costs on profitability and pricing strategy.