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 $ 2, 400 Annual demand 88,000 units Life cycle 6 years Target profit 23 percentage 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 7 percent return on sales. 1. Target Cost 2. Target Cost 3. Target Cost