1. Boeing Co. is focusing on reducing costs in its aircraft manufacturing division. The current figures for the latest production run are as follows:

Requirements:

• Calculate the COGS using the formula: COGS = Direct Materials + Direct Labor + Factory Overhead.
• COGS Table with the following values:
  • Direct Materials: $2,500,000
  • Direct Labor: $1,800,000
  • Factory Overhead: $1,200,000

• Recommend strategies to reduce COGS by 15% through process optimization.
• Justify how reducing COGS aligns with Lean manufacturing principles.
• Present a financial projection demonstrating potential savings and their impact on Boeing's financial statements.

COGS Table:

Category	Amount ($)
Direct Materials	$2,500,000
Direct Labor	$1,800,000
Factory Overhead	$1,200,000
Total COGS	$5,500,000