Miguel Inc. manufactures a product that has a selling price of $31.50 and costs a total of $24.48 per unit to produce. A competitor is introducing a comparable product that will sell $29.00 per unit. Management believes it must lower the price to $29.00 to compete in the highly competitive market. Marketing believes that the new price will maintain the current sales level. Currently, the company sells 300,000 units per year. Required (A) What is the target cost for the new price if the target operating income is 20% of sales? (B) If $29.00 is the new price and costs remain the same, what is the company's annual operating income? (C) What is the target cost per unit if the selling price is reduced to $29.00 and the company wants to maintain its same income that they would earn before making any changes? (D) What kinds of challenges or problems could arise if the company mismanages implementing target costing? Briefly discuss.