XYZ Retail Store is evaluating its CGS and SG&A expenses:

• Requirements:
  • Calculate the Cost of Goods Sold for the fiscal year:
    • Beginning Inventory: $200,000
    • Purchases: $1,000,000
    • Ending Inventory: $150,000
• Analyze SG&A expenses:
  • Rent: $50,000
  • Depreciation: $30,000
  • Insurance: $10,000

• Compute the Gross Profit Margin and Operating Profit Margin.
• Recommend cost-cutting measures to reduce SG&A without affecting customer service.