1

A,

1 set the product

2 set selling price

3 set attainable profit margin

4calculate target cost =target selling price – profi margin

5 calculate target cost =est cost –org cost

6 introduce steps to reduce cost gap

B,

 We can calculate profit of the product for whole life

 We can control the cost
 If the product is loss making we can reduce other costs
 Help to set the selling price

C,

 Remove non value added items

 Negotiate for cheap suppliers
 Cheap labours in overseas
 Reduce idle time
 Use cheap materials that do not compromise the quality