The base cost of a project is equal to the cost that will be charged by Production to Marketing for each unit of the future product, assuming an initial production batch of 100,000 units.
The base cost depends on project characteristics: the higher the level in each attribute (Processing Power, Display Size, Design, Recyclable Materials, etc.), the higher the minimum unit cost. There is one exception to this rule: unit cost will increase if you try to reduce the carbon footprint of your products.
You may ask the R&D department to develop the project at the lowest possible base cost also called minimum base cost. Developing a project at the minimum base cost will usually be quite expensive in term of the development budget. Indeed, the R&D team has to select materials, change processes, negotiate with suppliers, so that the minimum base cost gets reached. You may also ask the R&D department to develop the project at a specified base cost (higher than the minimum cost). This will give more flexibility to the R&D team in the materials and processes selection, which will reduce the development budget. Obviously, the desired base cost must be compatible with the expected brand profitability, taking all factors into account: price, distributor margin, production costs, marketing and sales expenses, etc. Feasibility studies or online queries help you define the amount of this budget (below E. and F.).