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XYZ Tech Solutions is reviewing its financial performance: Category Amount ($) Cost of Goods Sold - Direct Costs $1,800,000 - Indirect Costs $600,000 SG&A Expenses

XYZ Tech Solutions is reviewing its financial performance:

Category

Amount ($)

Cost of Goods Sold


- Direct Costs

$1,800,000

- Indirect Costs

$600,000

SG&A Expenses


- Salaries

$1,000,000

- Marketing

$400,000

Requirements:

  • Calculate the Cost of Goods Sold (CGS) for XYZ Tech Solutions.
  • Evaluate the Earnings Before Interest and Taxes (EBIT).
  • Propose strategies to reduce SG&A costs by 15% through workforce optimization.
  • Analyze the impact of reduced SG&A costs on profitability.

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