Target Costing and Product Development at Mitsubishi

Requirements:

1. Implement target costing for Mitsubishi's new compact electric car model.

• Determine the target cost per unit for Mitsubishi's compact electric car to achieve a desired profit margin.
• Analyze the product development costs and recommend cost reduction strategies to meet the target cost.
• Evaluate the feasibility and profitability of Mitsubishi's target costing approach for the compact electric car model.