Walker Ltd is a New Zealand manufacturer of sports shoes for men and women. It has sustained strong growth in the New Zealand marketin recentyears dueto comfortability and quality of its shoes. Walker Ltd. Is consideringextending itsbusiness in the Australian market, where identicalshoes sellfor an average of $85 wholesaleprice. Managementhas appointed a marketingconsultant toobtaininformation about what features Australian consumers seek most in shoes. The marketing consultant conducted a market- research and provided WalkerLtd following information on the features and approximate cost of adding these features forAustralian market:

Features Desired inCost to add(in customer choiceRating

Australian market(5 is most important)

Colourfast material$14.51

Lighter weight16.753

Extra-soft inside13.002

Longer-wearing sole15.54

Walker Ltd is considering adding any of the features in entering the Australian market. The current average manufacturing cost of Walker's shoes is $50. Walker currently is making an average 20% profit margin per pair sold. Walker would like to maintain the same profit percentagein the Australian market. However, the firmrecognizesthat the Australian market requires an additional manufacturing cost of $5 per pair ofshoes. Ignore the currency exchange rate.

Should there be any cost reduction target if Walker Ltd. is not considering any new feature for entering the Australian market? Justify your answer.