XYZ Supermarket Chain is analyzing its CGS and administrative expenses:

• Requirements:
  • Calculate the Cost of Goods Sold for the fiscal year:
    • Beginning Inventory: $1,000,000
    • Purchases: $5,000,000
    • Ending Inventory: $800,000
• Analyze SG&A expenses:
  • Store Salaries: $1,200,000
  • Advertising Costs: $500,000
  • Rent and Utilities: $300,000

• Compute the Operating Income Margin.

Propose cost-control measures to reduce SG&A while enhancing customer experience