Lyman currently sells an industrial mixer for $900 that market leaders sell for $820. The current costs to manufacture and distribute the mixer total $645, and the company has a profit goal of 30% of sales. Lyman uses target costing in its efforts to be a leader in the marketplace. On the basis of this information, (1) what should Lyman 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? 
Definitions:
Sustainability Improvement
Efforts or initiatives aimed at enhancing an organization's or activity's environmental, economic, and social sustainability.
Resource Reduction
Strategies or actions taken to decrease the amount of resources used, including materials, energy, and labor, often to improve efficiency or sustainability.
Climate Change
Long-term significant changes in the patterns of temperature, precipitation, and weather phenomena attributed largely to human activities.
Carbon Dioxide
A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is a major component of the carbon cycle.
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