Google LLC is evaluating its COGS for a new cloud computing platform:

Requirements:

• Calculate the COGS using the formula: COGS = Data Center Costs + Technical Operations Costs + Allocated IT Support.
• COGS Table with the following values:
  • Data Center Costs: $25,000,000
  • Technical Operations Costs: $10,000,000
  • Allocated IT Support: $5,000,000

• Analyze the impact of R&D expenses on COGS.
• Recommend strategies to reduce COGS by 15% through automation and technology investments.
• Discuss how reducing COGS aligns with Lean principles in the technology sector.
• Provide a financial projection demonstrating potential cost savings for Google.

COGS Table:

Category	Amount ($)
Data Center Costs	$25,000,000
Technical Operations Costs	$10,000,000
Allocated IT Support	$5,000,000
Total COGS	$40,000,000