Cost Estimation and Pricing Strategy at Mercedes-Benz

Requirements:

1. Develop a cost estimation model for Mercedes-Benz to price its new line of luxury SUVs.

Mercedes-Benz Model	Direct Materials Cost ($)	Direct Labor Cost ($)	Overhead Cost ($)
GLC 300	35,000	15,000	20,000
GLE 450	40,000	18,000	25,000

• Estimate the total manufacturing cost for Mercedes-Benz's GLC 300 SUV.
• Calculate Mercedes-Benz's markup percentage on cost to achieve a target selling price of 65,000 dollars.
• Recommend pricing strategies based on cost estimation to maximize profitability and market competitiveness for Mercedes-Benz.