please answer question 8-35

Problems lars LO 3 8-35 Target costing calculations A major car manufacturer developed the following information as part of its target costing efforts; CATEGORY Customer Importance Rating by Category Safety IMPORTANCE Comfort and convenience 140 Economy 120 Styling 40 Performance 60 Total 140 500 Target Cost by Function Group FUNCTION GROUP TARGET COST Chassis $1.400 Transmission 280 Air conditioner 100 Electrical system 700 Other function groups 4,520 Total $7,000 Quality Function Deployment (Correlation) Matrix Function Group AIR ELECTROCAL CATEGORIES CHASSS TRANSMISSION CONDITIONER SYSTEM Groups Safety 0.3 0.1 10.1 Comfort and convenierice 0.3 0.1 0.1 15 Economy 0.2 0.2 0.1 0.1 Styling 09 Performance 03 0.2 Required (a) Prepare an exhibit similar to Exhibit 8-9 showing percentage contributions of each function group to categories of customer requirements. (b) Prepare a value index exhibit similar to Exhibit 8-10. (c) Which function groups are candidates for cost reduction? 101 8-36 Total-life-cycle costing Consider the following situation: Your manager comes to you and says, "I don't understand why everyone is talking about the total-life-cycle costing approach to product costing. As far as I am concerned. this new approach is a waste of time and energy. I think we should just stick to what we know, and that is the traditional approach to product costing