Amgen Inc. is assessing its COGS for a new biopharmaceutical production line:

Requirements:

• Calculate the COGS using the formula: COGS = Raw Material Costs + Labor Costs + Allocated Facility Overhead.
• COGS Table with the following values:
  • Raw Material Costs: $15,000,000
  • Labor Costs: $8,000,000
  • Allocated Facility Overhead: $6,000,000

• Evaluate the impact of regulatory compliance costs on COGS.
• Recommend strategies to reduce COGS by 20% through process innovation and supply chain optimization.
• Discuss how reducing COGS aligns with Lean principles in biotechnology.
• Provide a financial projection demonstrating potential cost savings for Amgen.

COGS Table:

Category	Amount ($)
Raw Material Costs	$15,000,000
Labor Costs	$8,000,000
Allocated Facility Overhead	$6,000,000
Total COGS	$29,000,000