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Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following
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 Required: $ 1,500 89,000 units 6 years 27 percentage return on sales 1. Compute the target cost of this product 2. Compute the target cost if Majesty wants a 41 percent return on sales. 3. Compute the target cost if Majesty wants a 9 percent return on sales 1. Target Cost 2 Target Cost 3. Target Cost
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