E4-20 (Algo) 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 1,400 91,000 units 5 years 29% return on sales Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 35 percent return on sales. 3. Compute the target cost if Majesty wants a 7 percent return on sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the target cost of this product. Target Cost