Mercedes-Benz is analyzing its COGS for a new electric vehicle model:

Requirements:

• Calculate the COGS using the formula: COGS = Raw Materials + Direct Labor + Manufacturing Overhead.
• COGS Table with the following values:
  • Raw Materials: $8,000,000
  • Direct Labor: $4,000,000
  • Manufacturing Overhead: $2,500,000

• Assess the impact of tariffs and international trade policies on COGS.
• Recommend strategies to reduce COGS by 10% through lean manufacturing and operational efficiencies.
• Explain how reducing COGS aligns with Lean principles in automotive manufacturing.
• Present a financial projection illustrating potential cost savings for Mercedes-Benz.

COGS Table:

Category	Amount ($)
Raw Materials	$8,000,000
Direct Labor	$4,000,000
Manufacturing Overhead	$2,500,000
Total COGS	$14,500,000