1. Hanes Sport Wear is facing increased price competition, and its market price has fallen by $3. What approach besides target costing can Hanes use to reduce manufacturing cost?
2. Comdex Inc. manufactures parts for the telecom industry. One of its products that currently sells for $160 is now facing a new competitor that offers the same product at $140. The parts currently cost Comdex $130. Comdex believes it must reduce its price to $140 to remain competitive. What is the target cost of the product if Comdex desires a 25 percent profit on sales dollars?