Spotlight determined there was a cost gap between the GPx Target Manufacturing Cost and the initial product costs developed by their manufacturing team.

Spotlight is concerned about 5 of the components of the GPx, which they believe are the main causes of this gap.

The components and their costs causing concern are:

1. The Waterproof Aluminum Case & Bulb Holder,
2. the Red & White LED Bulbs,
3. the Rechargeable Batteries,
4. the GPS Receiver & Transmitter Board, and
5. the USB Charging Cable.

Spotlight's goal is reduce their total cost by at least 10%.

To accomplish the goal, Spotlight surveyed a group of outdoor enthusiasts to test the GPx prototype and received from them valuable customer preference data with which they want to use to create a value index on each component. They would like your assistance in creating this GPx Value Index and to provide recommendations as to what actions to take on each component.

Their feedback indicated four features were important and rated each one on a 10-point

importance scale, where 1 = not at all important to 10 = extremely important.

Below is a summary of their feedback of key GPx features, what components contribute to those features, and of the costs of the 5 components of the flashlight management wants to address

Compute the Relative Costs and Relative Values for each of the 5 components of the GPx and determine the value index for each one.

What cost action for each component would you recommended management take based on their value index?

While there are many actions management can take, restrict your recommended Cost Actions to:

Reduce, Enhance, or No Action.

\begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{ Component } & MfgCost \\ \hline WaterproofAluminumCase&BulbHolder & $10.00 \\ \hline Red \& White LED Bulbs & $7.50 \\ \hline Rechargeable Batteries & $7.00 \\ \hline GPSReceiverandTransmitterBoard & $9.50 \\ \hline USB Charging Cable & $3.50 \\ \hline TotalManufacturingCost & $37.50 \\ \hline \end{tabular} Enter your specific \#s and recommended management actions in the table below. Please round all Value index numbers to 2 decimal places. Enter all numbers as decimals with a maximum two (2) decimal places. For example: 0.912 should be entered as 0.91 Remember: While there are many actions management can take, restrict your recommended Cosi Actions to: Reduce, Enhance, or No Action. Remember: While there are many actions management can take, restrict your recommended Cost Actions to: Reduce, Enhance, or No Action