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Target Costing- Case HCL Provalue details Production Per Unit Sale Price Full Cost 150000 units 10000 1,35,00,00,000 in this -Manufacturing costs -Operating costs 1,02,00,00,000

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Target Costing- Case HCL Provalue details Production Per Unit Sale Price Full Cost 150000 units 10000 1,35,00,00,000 in this -Manufacturing costs -Operating costs 1,02,00,00,000 33,00,00,000 Market wants to redesign Provalue and to be sold at much less price. HCL Expectation Competitors to lower price by 15% 20% Rs 10,000 to 8,000 per unit Respond aggressive above price cut by -that is from Price cut leads to annual sales increase by 1,50,000 to 2,00,000 units Derive Target cost per unit if HCL wants a 10% target operating income on sales revenue. How much HCL reduce its unit cost?

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