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Concept Illustration: Rapid Heal Tech Ltd (RHTL) is a leading IT Security Solutions and ISO-9001-certified Company. The solutions are well integrated systems that simplify IT Security Management across the length and depth of devices and on multiple platforms. RHTL has recently developed an Antivirus Software and the Company expects to have a Life Cycle of less than 1 year. It was decided that it would be appropriate to adopt a Market Skimming Pricing Policy for the launch of the product. This Software is currently in the Introduction Stage of its Life Cycle and is generating significant unit profits. Explain, with reasons, the changes if any, to the Unit Selling Price that could occur when the Software moves from the Introduction Stage to Growth Stage of its Life Cycle. Also suggest necessary strategies at this stran Total Cost To achieve the Target Cost to maintain the same profit, the Company is evaluating the proposal to reduce Labour Costa Automatic Machine of 20 Lakhs as replacement of Old Machine worth 5.0 Lakhs. The Vendor is agreeable to take back proc Factory OH. A Vendor supplying the Machine suitable for the Company's operations has offered an advanced technologi Existing Machine is 1.20 Lakhs p.a, whereas there will be warranty of services free of cost for the New Machine first 2 years. The Produ Machine at 270 Lakhs only. The Company's policy is to charge depreciation at 10% on WDV. The Maintenance Charcer 10 Supervisors whose Salary is ? 1.50 Lakhs p.a.. The New Machine having Conveyor Belt is expected to help in cost cutting a as gene 1. improve Productivity of workers by 20% 2 Cut-down Material Wastage by 1% Pro- offe 3. Elimination of services of Supervisors because of automatic facilities of the machine Phi 4 Saving in Packaging Cost by 1.5 Lakhs. Assurning Cost of Capital 15%, find how many Supervisors should be removed from the production activities to achieve the Targelde P- 3. Target Grafini Values 4. Target Costing - Value Analysis Ram Furniture Appliances (RFA) began 25 years ago, as a small family-run business supplying custom-made school funds. RFA has grown into a thriving hub of experts specializing in either custom-made, locally sourced or quality imported commercions furniture. The newly appointed CFO is concerned about the trends in dropping sales volumes, increasing costs, and hence fallir , over the last 3 years. He observed that the reason of these trends is increased cut-throat competition that has emerged over the years. For many years, RFA has been known for high quality but now this quality is being matched by the competitors, RFA's SE the market is declining due to equivalent products being sold by competitors at lower prices. It is considered that, to offer such lower the furniture's production costs of the competitors must be lower than RFA's. to of motion To make this happen, the CFO feels that RFA should involve all representatives of its Value Chain, viz. Suppliers, Agents, Distrios penses to etc. in order to spread concepts and efforts to reduce the cost over all the Value Chain through the development of the spirit dies operation and understanding among all members of the Value Chain associated with the product. The CFO feels that such a Tature of Costing system is based on the concept of long-term relations and mutual benefits in the long term between Suppliers and all menntastomers and representatives of the entire Value Chain. ture of mpetit