Ford Motor Company is assessing its COGS for a new vehicle production line:

Requirements:

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

• Recommend strategies to reduce COGS by 10% through lean manufacturing techniques.
• Discuss how reducing COGS aligns with Lean principles in automotive manufacturing.
• Provide a financial projection illustrating potential cost savings for Ford.

COGS Table:

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