1. A consumer electronics company develops a new smartphone with target selling price $500/unit. Estimated costs include: Direct materials $150/unit, direct labor $50/unit, overhead $100,000.
   • Requirements:
     • Calculate the target cost per unit and the target cost gap.
     • Discuss value engineering techniques to achieve the target cost.
     • Analyze the feasibility of achieving the target cost based on current cost estimates.
     • Recommend cost reduction strategies without compromising product quality.
     • Evaluate the impact of target costing on product profitability and market competitiveness.