Brisbane Video Corporation manufactures TV sets in Australia, largely for the domestic market. The company recently implemented a kaizen costing program with the goal of reducing the manufacturing cost per television set by 10 percent during 20x7, the first year of the kaizen effort. The cost per TV set at the end of 20x6 was $500. The following table shows the average cost per television set estimated during each month of 20x7. (On the day this problem was written, the Australian dollar was equivalent in value to .7734 US dollars.)

Month Cost per Set Month Cost per Set RIAINUAIN tks tresses

a. Draw and label the axes of the kaizen costing chart.

b. Indicate the current year cost base and the kaizen goal (cost-reduction rate) on the chart.

c. Label the horizontal axis with the months of 20x7. Label the vertical axis with dollar amounts in the appropriate range.

d. Plot the 12 monthly estimates of the average cost per TV set. Then draw a line connecting the cost points that were plotted.

e. Complete the chart with any other labels necessary.

f. Briefly explain the purpose of kaizen costing. How could a continuous quality-improvement program, coupled with the kaizen costing effort implemented by Brisbane Video Corporation, help the firm begin competing in the worldwide market?