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 $ 2,500 Estimated market price Annual demand Life cycle Target profit 100,000 units 6 years 26% return on sales Required 1. Compute the target cost of this product. Target Cost 2. Compute the target cost if Majesty wants a 35 percent return on sales arget Cost 3. Compute the target cost if Majesty wants a 9 percent return on sales. Ta rget Cost