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 2,000 93,000 units 6 years 28% return on sales Required: 1. Compute the target cost of this product. Target Cost 2. Compute the target cost if Majesty wants a 43 percent return on sales. Tarpet Cost 3. Compute the target cost if Majesty wants a 11 percent return on sales. Target Cost Hints References eBook & Resources