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 $ 1,200 Annual demand 91,000 units Life cycle 4 years Target profit 20 % return on sales Required : 1. Compute the target cost of this product. 2) Compute the target cost if Majesty wants a 37 percent return on sales. 3) Compute the target cost if Majesty wants a 12 percent return on sales.