Key terms: Competition-based method, Cost-plus methods, Demand-based method, Differential analysis, Differential cost, Differential profit (loss), Differential revenue, Opportunity cost, Product cost method, Production bottleneck, Sunk costs, Target costing, Theory of constraints (TOC), Total cost method, Variable cost method, Yield pricing.

If an expert can please create a memo of at least two lengthy paragraphs in your own words and also be straight to the point and not include salutations or signature blocks as well as use 3 additional key terms from the list above in the paragraphs to support your response so in total you should be using 4 key terms because target costing is mandatory to use and also please highlight in the paragraphs the key terms you used. If this can be done as soon as possible I would really appreciate it. Please and thank you in advance.

The expert needs to answer the green pencil question but by using 3 additional key terms from the list above in the paragraphs to support their response so in total you should be using 4 key terms because target costing is mandatory to use and also please put everything on one step not multiple steps because it gets confusing after that for when you post the answer. Also please highlight or bold the key terms you used in the paragraphs so that I can know you used them in your response.

The following conversation took place between Juanita Jackson, Vice President of Marketing, and Les Miles, Controller of Diamond Computer Company: Juanita: I am really excited about our new computer coming out. I think it will be a real market success. Les: I'm really glad you think so. I know that our success will be determined by our price. If our price is too high, our competitors will be the ones with the market success. Juanita: Don't worry about it. We'll just mark our product cost up by 25%, and it will all work out. I know we'll make money at those markups. By the way, what does the estimated product cost look like? Les: Well, there's the rub. The product cost looks as if it's going to come in at around $1,200. With a 25% markup, that will give us a selling price of $1,500. Juanita: I see your concern. That's a little high. Our research indicates that computer prices are dropping and that this type of computer should be selling for around $1,250 when we release it to the market. Les: I'm not sure what to do. Juanita: Let me see if I can help. How much of the $1,200 is fixed cost? Les: About \$200. Juanita: There you go. The fixed cost is sunk. We don't need to consider it in our pricing decision. If we reduce the product cost by $200, the new price with a 25% markup would be right at $1,250. Boy, I was really worried for a minute there. I knew something wasn't right. Write a brief memo from Les Miles to Juanita Jackson (a) responding to her solution to the pricing problem, and (b) explaining how target costing could be used to solve the problem. A memo is not a letter. Memos do not have salutations or signature blocks. - Use a minimum of 3 concepts o support your response to Juanita's proposed solution and your recommendation to use target costing