Antonio Co. developed the followinginformation as part of its target costing efforts to introduce a new high
Question:
Antonio Co. developed the followinginformation as part of its target costing efforts to introduce a new high tech coffee maker.
Customer Satisfaction Criteria and Ranking | |||
Importance | Relative Importance | ||
Safety | 75 | 25% | |
Performance | 105 | 35% | |
Looks | 120 | 40% | |
Total | 300 | 100% | |
Product Components and Cost | |||
Cost | Percent of Total | ||
Brew Basket | $20 | 16.7% | |
Body/Carafe | $15 | 12.5% | |
Electronic Display | $45 | 37.5% | |
Heating/Warming | $40 | 33.3% | |
Total | $120 | 100.0% | |
Contribution of Components to Customer Satisfaction (or Function) | |||
Customer Satisfaction Criteria | |||
Components | Safety | Performance | Looks |
25% | 35% | 40% | |
Brew Basket | 20.0% | 35.0% | 20.0% |
Body/Carafe | 10.0% | 20.0% | 50.0% |
Electronic Display | 20.0% | 30.0% | 20.0% |
Heating/Warming | 50.0% | 15.0% | 10.0% |
100.0% | 100.0% | 100.0% |
Required: a) Prepare a table showingpercentage contributions of each function group to categories of customer requirements.
b) Prepare a value index for each component of a coffee maker and interprete the results.
c) Which function groups are candidates for cost reduction?
Expert Answer:
a To calculate the percentage contributions of each function group to categories of customer requirements you can multiply the importance of each cust... View the full answer
