Customer Iportance Rating by Customer Target Cost by Function Group Selling Pric 9500

Importan Function Target

Category ce Group Cost Profit Requ 3000
Saferty 140 28% Chasis 1400 20% Cost Price 6500
Comfort and Convienece 120 24% TM 280 4%
Economy 40 8% AC 100 1%
Styling 60 12% ES 700 10%
Performance 140 28% Others 4520 65%
Total 500 Total 7000

" maping the Importance of Features in to the functional Group

Chasis TM AC ES Others Chasis TM AC ES Others
Saferty 0.3 0.1 0.1 0.5 Saferty 0.08 0.03 0.03 0.14
Comfort and Convienece 0.3 0.1 0.1 0.5 Comfort an 0.07 0.02 0.02 0.12
Economy 0.2 0.2 0.1 0.1 0.4 Economy 0.02 0.02 0.01 0.01 0.03
Styling 0.1 0.9 Styling 0.01 0.11
Performance 0.3 0.2 0.1 0.4 Performan 0.08 0.06 0.03 0.11
Total Total

Relative Benefits 27% 10% 3% 9% 51% 0.07 0.02 0.01 0.02 0.11
Releative Cost 20% 4% 1% 10% 65%
Value Index (Relative Benefi 1.3 2.5 2.2 It is area of 0.8
0.9 `
improvement where
Whrever the Value Index is the cost should be
higher than 1, it is not required reduced and focus
to be changed. area.
Enchance Reduce Cost
Fixed Cost 90000
Variable Co 15 Per Issue %
Increase
% Drop in
in
SP (Rs) Qty Profit (Rs) Profit Circulatio
60 22000 900000 n
50 28000 890000 -0.011111 0.272727 Increase in Circulation is more as compared to Dro
40 32000 710000 -0.202247 0.142857
Variable M 400
Applied Fi 250
Abosrporti 650
varaivle Se 50
Allocated 100

Total Cost 800

Investemen 600000
Desired Pr 60000
Annual Fixed Cost