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need help As a former world champion of sprint Ms. Eda T. Light - nickname Thunder & Lightning - established her own sports shoes company
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As a former world champion of sprint Ms. Eda T. Light - nickname "Thunder & Lightning" - established her own sports shoes company "TAL Ltd." Before launching the first sprinters' shoe for young female athletes she wants to apply the Target Costing methodology. Her cousin ran a survey and did market research, and found out how potential buyers value the various features of the product => Table 1. Table 1 How important are the shoes features for the buying decision of female athletes? 45% 30% 100% Natural "naked foor Features experience 25% Individual sation (colour name) Grip The product's price should be $ 150 a pair. The only sales channel is the online shop. She is not too ambitious about profits but 30% of the selling price have to be earned at minimum to cover the initial investment over time, and also her admin cost. Her uncle with 20+ years of experience in the shoe industry assessed how the features are based on actual components of the shoe => Table 2. Table 2 Contribution of components to "produce the features Natural "naked foor experience Individual sation (coulor name..) Grip sole 50% 80% 10% 40% 50% knitted main(upper) part padded inlays 10% 20% Laces 30% tall 100% 100% 100% And, finally the current budgets for the components in Table 3 Table 2 Contribution of components to "produce" the features Natural "naked foor experience sole 50% Individual sation (coulor name.) Grip 80% 10% 40% 60% kritted main (upper) part padded inlays 10% 20% Laces 100% 100% 30% tal 100% And, finally the current budgets for the components in Table 3 Table 3 budgeted actual cost components' cost per unit cost porportions sole $ 45,00 33% kmitted main (upper) part $ 55,00 41% padded inlays $ 25,00 19% Laces $ 10.00 7% Total $ 135,00 100% Upload your handwritten solution here as pdf or foto (NOT HEIC!) a) What level of cost is required to secure the target profit? 3 points b) How much cost need to be saved? 1 point c) Why not save the same portion for each component? 2 points d) What are optimal cost portions in and % for the sole and knitted part? 4 points e) What do the target cost indices (compute them!) for those two components tell you? 4 points f) What are the main benefits of the target cost methodology? 4 Step by Step Solution
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