Target costing) Donna Dierks has just been presented the following market and production estimates on Product Ninja-2 that has been under develop¬ ment in her company.

Use the concept of target costing to integrate the marketing and engineering information and interpret the results for Dierks.

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Projected market price of Ninja-Z Projected profit per unit Estimated selling and administrative costs per unit Estimated production costs Direct material Direct labor Variable overhead Fixed overhead $140 80 30 $10,000 annually $430 (based on 180,000 life cycle unit sales over 5-year life) 70 28 80