Target Costing and Product Development at Maserati

Requirements:

1. Apply target costing principles at Maserati to develop cost-effective luxury SUVs for new market segments.

Maserati Model	Target Selling Price ($)	Target Cost ($)
Levante	90,000	75,000
Quattroporte	150,000	120,000

• Determine Maserati's target cost for its upcoming Levante luxury SUV.
• Evaluate the feasibility of achieving target costs through supplier collaboration and value engineering for Maserati's product development.
• Recommend cost reduction strategies to align with Maserati's target costing objectives for luxury SUVs.