BP plc is assessing its COGS for the current fiscal quarter in energy production:

Requirements:

• Calculate the COGS for energy production using the formula: COGS = Exploration Costs + Production Costs + Allocated Operational Overhead.
• Present a detailed COGS table with the following values:
  • Exploration Costs: $20,000,000
  • Production Costs: $50,000,000
  • Allocated Operational Costs: $10,000,000

• Recommend strategies to reduce COGS by 8% through operational efficiencies.
• Explain how reducing COGS aligns with Lean energy sector principles.
• Provide a financial projection illustrating potential cost savings for BP.

COGS Table:

Category	Amount ($)
Exploration Costs	$20,000,000
Production Costs	$50,000,000
Allocated Operational Costs	$10,000,000
Total COGS	$80,000,000