Nabors Toy Product Development Department is in the process of developing a new video game. The product life cycle is estimated at 27 months. The estimated sales over the life cycle are 1,500,000 units. For the current design, the development, production and logistics costs for the life cycle are estimated at Rp180,000,000. Product specifications and market share are targeted at IDR 150 per unit. The target profit per unit is IDR 50.

Requested:

1. What is the target cost?

2. What is the reduced cost per unit and in total for meeting this target?

3. Describe three approaches to lowering costs so that target costs are met!