Hygenico manufactures plastic face shield, which can be moulded to the shape of the wearers face for maximum protection. Earlier this year, a Taiwanese company entered the market offering a similar face shield at a price of 20% below the Guardian price of $35 per unit. Hygenicos parent company has a target profit margin of 40% on sales on each of its products.

(a) What target cost would have to be set for the Guardian face shield to remain competitive and meet the requirements of Hygenicos parent company? Calculate the cost reduction target.

(b) Explain how Hygenico could apply the principles of life cycle management to achieve this cost.

(c) Explain how value engineering could help in this process.