Target costing for laptop Properties Valuable to Customers

Target SP 20000 Speed

Profit requirement 2000 Storage space
18000 Display
SG&A Expenses 1000 Connectivity
Target cost for materials & assembly 17000 Battery life
Target materials cost @70% 11900 Weight
Target assembly cost @30% 5100 Cosmetics
OS
Integration
e to Customers
 Property vs material matrix (in %)
Bluetoo
Contribu Process Hard Operating Wifi th USB HDMI Assembling /
Property tion Total or GPU RAM drive Screen Battery System module module ports ports VGA ports Casing

Speed 45% 100% 50% 30% 20%

Storage space 20% 100% 95% 5%
Display 10% 100% 50% 50%
Connectivity 10% 100% 30% 15% 30% 15% 10%
Battery life 5% 100% 15% 70% 15%
Weight 3% 100% 5% 20% 15% 40% 1% 1% 1% 1% 1% 15%
Cosmetics 2% 100% 100%
OS 3% 100% 100%
Integration 2% 100% 100%
100%

Property vs material matrix (in costs)

Bluetoo
Contribu Process Hard Operating Wifi th USB HDMI Assembling /
Property tion Total or GPU RAM drive Screen Battery System module module ports ports VGA ports Casing

Speed 45% 7650 3825 2295 1530

Storage space 20% 3400 3230 170
Display 10% 1700 850 850
Connectivity 10% 1700 510 255 510 255 170
Battery life 5% 850 128 595 128
Weight 3% 510 26 102 77 204 5 5 5 5 5 77
Cosmetics 2% 340 340
OS 3% 510 510
Integration 2% 340 340
100% 17000 3851 850 2295 4990 927 799 808 515 260 515 260 175 757