Which of the following is not a characteristic of firms following the strategy of cost leadership? 1. Exploit economies of scale 2. Institute tight cost controls. 3. Adopt organization-wide policies of cost minimization. 4. Focus on innovation more than cost control. 5. All of the above are characteristics of firms following the strategy of cost leadership. QUESTION 9 Texun Electronics manufactures Texun Electronics manufactures scientific calculators. The product life of a calculator is four years. Each model typically offers similar features. Texun targets an average profit margin of 10% of its expected revenue over the life cycle. It does not expect its manufacturing cost to vary materially over the four-year life. Estimated volumes and unit price of model TE 75 over its expected life is given below: Applying the target costing model, the allowable unit cost of TE 75 is: 1.$150.772.$58.983.$65.534.$63.755.$45