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 $ 1,600 Annual demand 93,000 units Life cycle 4 years Target profit 25 % return on sales Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 38 percent return on sales. 3. Compute the target cost if Majesty wants a 6 percent return on sales.