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:Annual demand $89,000$ units

Life cycle $4$ years

Target profit $28$ percentage return on salesRequired:

Compute the target cost of this product.

Compute the target cost if Majesty wants a $41$ percent return on sales.

Compute the target cost if Majesty wants a $10$ percent return on sales.