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Assume the first pass manufacturing cost for the ezB electric mountain bike exceeds its target manufacturing cost by $46.00. To eliminate this cost gap, ezB

Assume the first pass manufacturing cost for the ezB electric mountain bike exceeds its target manufacturing cost by $46.00. To eliminate this cost gap, ezB interviews potential customers of the bike and determines they value (on a 10pt scale) the following key features of its newly developed mountain bike:

Preferences / Feature Pref electric bike product engineers indicate the % of these
Features Ranking features come from the following parts :
Smooth Ride 7 30% from Part A; 70% from Part B
Fast Charging 10 10% from Part A; 80% from Part C; 10% from Part D
Stops Quickly 8 40% from Part B; 40% from Part C; and 20% from Part D

The ezB development and manufacturing team evaluate 4 parts which contribute to these features potential customers have just evaluated. These 4 parts and their costs are:

Part A: $150,00

Part B: $115.00

Part C: $285.00

Part D: $100.00

Create Value Index for these 4 parts based on their costs and features customers value. Based on this value index, what management actions should be taken for each of these 4 parts?

Group of answer choices

a) Part A: No Action; Part B: Enhance; Part C: Reduce; Part D: Reduce.

b) Part A: Enhance; Part B: No Action; Part C: Reduce; Part D: No Action.

c) Part A: Reduce; Part B: Enhance; Part C: No Action; Part D: Enhance.

d) Part A: No Action; Part B: Reduce; Part C: Enhance; Part D: Reduce.

e) Part A: Reduce; Part B: Enhance; Part C: No Action; Part D: Reduce.

f) None of the above

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