E4-19 Calculating Target Cost (LO 4-8) 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 1,100 95,000 units 4 years 26% retun on sales Required: 1. Compute the target cost of this product Target Cost 2. Compute the target cost if Majesty wants a 37 percent return on sales Target Cost 3. Compute the target cost if Majesty wants a 11 percent return on sales Target Cost