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: $ 1,800 85,000 units 4 years 23 percentage return on sales 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 43 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