Required:1. Calculate the target cost associated with the initial 25 percent market share. Does the initial design meet this target? Now calculate the total life-cycle profit that the current (initial) design offers (including preproduction costs).2. Assume that the two features that are apparently not valued by consumers will be eliminated. Also assume that the selling price is lowered to $125.a. Calculate the target cost for the $125 price and 35 percent market share.b. How much more cost reduction is needed?c. What are the total life-cycle profits now projected for the new product?d. Describe the three general approaches that Nico can take to reduce the projected cost to this new target. Of the three approaches which is likely to produce the most reduction?3. Suppose that the engineering department has two new designs: Design A and Design B. Both designs eliminate the two non-valued features. Both designs also reduce production and logistics costs by an additional $8 per unit. Design A however leaves post-purchase costs at $10 per unit while Design B reduces post-purchase costs to $4 per unit. Developing and testing Design A costs an additional $150000 while Design B costs an additional $300000. Calculate the total lifecycle profits under each design. Which would you choose? Explain. What if the design you chose cost an additional $500000 instead of $150000 or $300000? Would this have changed your decision?4. Refer to Requirement 3. For every extra dollar spent on preproduction activities how much benefit was generated? What does this say about the importance of knowing the linkages between preproduction activities and later activities?