Carolina Coat Factory (CCF) is developing in Wi-Fi hotspot. Although the company is still working out the details of the design (e.g. how to wash it), the purchasing and product development teams have come up with three sets of target cost calculations, depending on the final design. The target cost represents COGS in these scenarios. Below are the three numbers for each target cost scenario. exciting coat called the wCoat that has a built a new Scenario 1 The planned selling price is $60, the desired profit margin is 11%, the marketing costs are 8%, distribution costs are 10% of selling price. Overhead is $5.00 Scenario 2: The planned selling price is $90, the desired profit margin is 30%, the marketing costs are 10%, distribution costs are 10% of selling price. Overhead is $6.00 Scenario 3: The planned selling price is $95, the desired profit margin is 10%, the marketing costs are 18%, distribution costs are 12% of selling price. Overhead is $10.00. Question 1: Calculate the target cost of each of the three scenarios. CCF believes in can reduce costs and improve profits by lowering its COGS. They have presented you with the following information (Table 1) for Q1 2020. Using this information in Table 1, answer questions 2a, 2b, 3a, and 3b. $25,000,000 $18,100,000 $1,425,000 Sales COGS Net Profit Question 2a: If you COGS and new net profit? Question 2b: If CCF sells about 445,000 units of the wCoat in Q1 2020, which target cost out of the three scenarios calculated in Question 1 matches this new COGS? negotiate to reduce the COGS by 7.5%, what is the resulting can new Question 3a: If you can negotiate to reduce the COGS by 6%, what is the resulting COGS and new net profit? Ouestion 3b: If CCF ells about 362,000 units of the wCoat in Q1 2020, which target cost out of the three scenarios calculated in Question 1 matches this new COGS