Chapter 4 Homework i 14 1 points eBook Hint Print References Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates: Estimated market price Annual demand Life cycle Target profit Required: Saved $ 2,800 98,000 units 1. Target Cost 2. Target Cost 3. Target Cost 6 years 30 percentage return on sales 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 39 percent return on sales. 3. Compute the target cost if Majesty wants a 11 percent return on sales. Help Sa

Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates: Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 39 percent return on saies. 3. Compute the target cost if Mojesty wants a 11 percent return on sales