File Edit View Go Tools Window Help a s Chapter15.pdf (page 14 of 42) 47, Hughes currently sells a mixer for $850 that market leaders sell for S815The current costs to manufacture and distribute the mixer total $530, and the company has a profit goal of 40% of sales. Hughes uses target costing in its efforts to be a leader in the marketplace. On the basis of this information, (1) what should Hughes consider to be the initial driver of the target- costing process and (2) what amount of cost reduction is needed for the company to achieve its goals? Initial Driver Current price of S850 Current price of $850 Market leaders' price of $815 Market leaders' price of $815 Market leaders' price of $815 Cost Reduction S20 $41 $20 $41 A. B. C. D. E. Some other amount Answer: D LO:5 Type: RC, A 48. Quantum Enterprises currently sells a piece of luggage for $200. An aggressive competitor I has announced plans for a similar product that will be sold for $170. Quantum's marketing department believes that if the price is dropped to meet competition, unit sales will increase by nt cost to manufacture and distribute the luggage is $130, and Quantum has a merts competitive selling prices, what must happen to