Walmart is analyzing its COGS for the previous fiscal quarter:

Requirements:

• Calculate the COGS using the formula: COGS = Cost of Goods Purchased + Direct Labor + Allocated Store Operating Expenses.
• Present a detailed COGS table with the following values:
  • Cost of Goods Purchased: $10,000,000
  • Direct Labor: $2,000,000
  • Allocated Operating Expenses: $1,500,000

• Recommend strategies to reduce COGS by 15% through operational efficiencies.
• Explain how reducing COGS aligns with Lean retail principles.
• Illustrate the financial impact on Walmart's income statement and balance sheet with projected savings.

COGS Table:

Category	Amount ($)
Cost of Goods Purchased	$10,000,000
Direct Labor	$2,000,000
Allocated Operating Costs	$1,500,000
Total COGS	$13,500,000