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Target Costing at Tesla Values: Market Price of Product: $40,000 Desired Profit Margin: 20% Target Cost per Unit: $32,000 Current Cost per Unit: $34,000 Requirements:
Target Costing at Tesla
- Values:
- Market Price of Product: $40,000
- Desired Profit Margin: 20%
- Target Cost per Unit: $32,000
- Current Cost per Unit: $34,000
- Requirements:
- Calculate the target cost gap for Tesla.
- Discuss the role of target costing in product pricing.
- Analyze the factors influencing the target cost per unit.
- Suggest cost reduction strategies to achieve the target cost.
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