Nestl S.A. is assessing its COGS for a new product line in nutritional supplements: Requirements: Calculate the COGS using the formula: COGS = Ingredients Costs

Nestlé S.A. is assessing its COGS for a new product line in nutritional supplements:

Requirements:

• Calculate the COGS using the formula: COGS = Ingredients Costs + Manufacturing Labor + Allocated Production Overhead.
• COGS Table with the following values:
  • Ingredients Costs: $12,000,000
  • Manufacturing Labor: $6,000,000
  • Allocated Production Overhead: $4,000,000

• Evaluate the impact of commodity price fluctuations on COGS.
• Recommend strategies to reduce COGS by 12% through supply chain optimization and procurement strategies.
• Explain how reducing COGS aligns with Lean principles in the food and beverage industry.
• Present a financial projection illustrating potential cost savings for Nestlé.

COGS Table:

Category	Amount ($)
Ingredients Costs	$12,000,000
Manufacturing Labor	$6,000,000
Allocated Production Overhead	$4,000,000
Total COGS	$22,000,000