After two years of selling mostly prototypes of their product, built to customer specifications, a company is
beginning to commercialize this product. The current average cost to build the product is $1000 per unit,
where $600 is the bill of materials and $400 id the direct labor. The company currently produces at the run
rate of the 100 good units per week from 200 total units processed. The firm currently sells the product at
$1500 per unit, without volume discounts. One of the major pressures from their customers is to cut costs
by 40% within one year. Which of the following strategies should the firm pursue first based on the
following research data ? Please assume there is infinite customer demand.