1. Tesla plans to launch a new electric vehicle with a target selling price of $40,000. Estimated costs include direct materials $15,000, direct labor $8,000, variable overhead $5,000, fixed costs $20,000,000.
   • Requirements:
     • Calculate the target cost per unit.
     • Determine the required cost reduction to achieve the target cost.
     • Recommend strategies to reduce costs while maintaining quality.
     • Evaluate the feasibility of achieving the target cost and profitability.