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 $1,100 85,000 units 5 years 30% retum on sales Required: 1. Compute the target cost of this product. Target Cost 2. Compute the target cost if Majesty wants a 35 percent return on sales. Target Cost 3. Compute the target cost if Majesty wants a 5 percent return on sales Target Cost