Target Costing at Samsung

• Values:
  • Market Price of Product: $800
  • Desired Profit Margin: 15%
  • Target Cost per Unit: $680
  • Current Cost per Unit: $720
• Requirements:

1. Calculate the target cost gap for Samsung.
2. Discuss the role of target costing in product pricing and profitability strategies.
3. Analyze the factors influencing the target cost per unit and their implications.
4. Recommend cost reduction initiatives to achieve the target cost at Samsung.