Walter is vice president of product development at a big computer maker. At a strategic planning retreat, he talks with the vice president of purchasing and the vice president of production. The computer maker spends about 80 percent of its cost on purchasing, 10 percent on production, and only 2 percent on product development. Which of the following statements is correct? 

a. Product development only corresponds to 2 percent of total cost and hence it is not an important source for future cost reductions. 

b. The costs for production and purchasing are mostly determined during product development and that is why, to reduce costs, product development is critical. 

c. Product development has to do more with marketing, not with costs. 

d. None of these statements is correct.