XYZ Retail Store is conducting a quarterly financial review. They need to:

• Compute Cost of Goods Sold (CGS):
  • Beginning Inventory: $300,000
  • Purchases: $1,500,000
  • Ending Inventory: $250,000

• Evaluate SG&A expenses:
  • Rent: $80,000
  • Depreciation: $40,000
  • Advertising: $30,000

• Recommend cost-saving measures to reduce SG&A expenses by 15% over the next quarter.