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: D $ 1,400 81,000 units 6 years 28 percentage return on sales 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 42 percent return on sales. 3. Compute the target cost if Majesty wants a 6 percent return on sales. 1. Target Cost 2. Target Cost 3. Target Cost