Life cycle management and target costing: manufacturer LO $16\mathrm{.}4,16\mathrm{.}5$

Hygenico manufactures plastic face shields for use as personal protective equipment. One of its top$-$selling products is the Guardian face shield, which can be moulded to the shape of the wearer's face for maximum protection. Earlier this year, a Taiwanese company entered the market offering a similar face shield at a price $20$ per cent below the Guardian price of $$35$ per unit. Hygenico's parent company has a target profit margin of $40$ per cent $($on sales$)$ on each of its products.

Required

What target cost would have to be set for the Guardian face shield to remain competitive and meet the requirements of Hygenico's parent company?

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

Explain how value engineering could help in this process.