Question: Cost Estimation and Pricing Strategy at Subaru Requirements: Develop a cost estimation model for Subaru's new line of electric vehicles (EVs). Subaru Model Direct Materials

Cost Estimation and Pricing Strategy at Subaru

Requirements:

  1. Develop a cost estimation model for Subaru's new line of electric vehicles (EVs).

Subaru Model

Direct Materials Cost ($)

Direct Labor Cost ($)

Overhead Cost ($)

Impreza EV

30,000

8,000

16,000

Forester EV

35,000

9,000

18,000

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

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