Cost Estimation and Pricing Strategy at Peugeot

Requirements:

1. Develop a cost estimation model and pricing strategy for Peugeot's new line of hybrid vehicles.

Peugeot Model	Direct Materials Cost ($)	Direct Labor Cost ($)	Overhead Cost ($)
308 Hybrid	25,000	10,000	15,000
508 Hybrid	30,000	12,000	20,000

• Estimate the total manufacturing cost for Peugeot's 508 Hybrid, including direct materials, direct labor, and overhead costs.
• Calculate Peugeot's markup percentage on cost to achieve a target selling price and profit margin for the 508 Hybrid.
• Recommend pricing strategies based on cost estimation to maximize profitability and market competitiveness for Peugeot.