Millennium Printers Inc. manufactures color laser printers. Model I-1819 presently sells for Differential Analysis and product pricing estimated to be dollar20, 500 and that Toyota requires a 20percentage profit margin on selling price (which is equivalent to a 25percentage markup on total cost). What price will Toyota establish for the Rav4 for the upcoming model year? What impact will target costing have on Toyota, given the assumed information? Target costing Millennium printers Inc. manufactures color laser printers. Model L-1819 presently sells for dollar200 and has a total product cost of dollar160, as follows: It is estimated that the competitive selling price for color laser printers of this type will drop to dollar182 next year. Millennium Printers wants to establish a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost reduction ideas: Purchase a plastic printer cover with Snap-on assembly. This will reduce the amount of direct labor by six minutes per unit. Add an inspection step that will add nine minutes per unit of direct labor but reduce the materials cost by dollar7.25 per unit. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 28percentage of the factory overhead is related to running injection molding machines. The direct labor rate is dollar20 per hour. Determine the target cost for Model L-1819 assuming that the historical markup on product cost is maintained. Determine the required cost reduction. Evaluate the three engineering improvements to determine if the required cost reduction can be achieved