CAN YOU HELP ME PLEASE? I think the answer for Value Index is B 104 and for the other one it is C Consider spending more
QUESTIONS 7 points Save Answer Babo Pencil Sharpener Company* Babo Pencil Sharpener Company designs and manufactures electric pencil sharpeners which they sell through college bookstores . Their customers have asked for a new less expensive model , expected to sell for $12 at the bookstores . Babo's product manager believes the bookstores can sell 20 , 000 units over the expected 2 year life of the product . The bookstores require a 30% gross margin . Design engineers indicate the design cost for the new sharpener will be $15 , 000 . Selling and administration costs are expected to be 15% of Babo's selling price ; Babo management expects an 8% pre- tax profit on all new products . The product manager receives approval to proceed with the design and contacts suppliers for the three components needed for the sharpener and receives first pass cost estimates as follows :" Quantity .* Cost per Qty. Materials Blades 2.40 Electronics 1/$ 1. 05 $ | Casing 1. 65 The product manager works with manufacturing and determines each sharpener will take 3 minutes to assemble and test at a rate of $24. 00 per hour for direct labor and manufacturing overhead . She also works with marketing to assess customer expectations of features for the new sharpener :" Feature Survey Score Component Contribution Fast sharpening 50% Blades , 50% Electronics Easy to clean 70% Casing , 30% Blades Attractive appearance* 100% Casing The Value Index for the Casing is :" O A . 0 . 67 O B. 1. 04 O C . 1 . 45 O D. 1. 50Assume the Value Index for the Casing is 1.15. The product manager should: 0 A- Reduce the cost of the Casing to bring the total cost closer to the target cost 0 5- Decrease the \"easy to clean" contribution of the Casing from 70% to 50% O C" Consider spending more on the Casing to enhance customer satisfaction 0 0- Increase the score for attractive appearance to 8