Suppose an intensive target costing exercise concludes that a product could not meet its allowable cost. However, the firm’s strategic group argues that the product is vital for retaining the firm’s...

Suppose an intensive target costing exercise concludes that a product could not meet its allowable cost. However, the firm’s strategic group argues that the product is vital for retaining the firm’s presence in an important market segment. Should the firm abandon the product or develop it?