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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 estimates:
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 94,000 units 4 years 29% return on sales Required: 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 5 percent return on sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the target cost of this product. Target Cost Required 1 Required 2 Required 3 Compute the target cost if Majesty wants a 41 percent return on sales. Target Cost Required 1 Required 2 Required 3 Compute the target cost if Majesty wants a 5 percent return on sales. Target Cost
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