1 Case 10-3 Target Costing Nebraska Toaster Company Aftab UsmaniAlex DerevinCarla DanielsShantanu Singh
2 Case Details Wants to introduce new product : A Toaster Oven Want to match the price on basic toasterMarket price : $20Wants to earn profit of 20% on sales priceCustomer requirements are identifiedToasts properlySizeSpeed of toastingToaster capacityAppearanceEasy to clean
10 Target Cost Index Function Heating Unit Display Light Lever Spring CoilTemp. Control & TimerBody DesignGrease CatcherImportance Index (A)0.4870.010.06150.0560.0450.3240.0165% of Target Cost (B)0.20.130.050.430.09Target Cost Index (A/B)2.4350.07188.8.131.52.750.18
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