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	$	1,900
Annual demand		97,000	units
Life cycle		6	years
Target profit		25	% return on sales

Required:

1. Compute the target cost of this product.

Target Cost = ?

2. Compute the target cost if Majesty wants a 37 percent return on sales.

Target Cost = ?

3. Compute the target cost if Majesty wants a 8 percent return on sales.

Target Cost = ?