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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:Annual

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.
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