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Question 1 TNA limited is in the construction business of leasing, selling of construction equipment and listed on the Johannesburg stock exchange. The company uses the weighted average costing system inventory valuation and applies the absorption costing system. The management of TNA are planning to introduce a new excavator product line. The results of the survey and a comparison of the new excavator with competitors' products and market prices, have been used to establish a target selling price (R 800 000) and projected lifetime volume (300 units). In addition, cost estimates have been prepared based on the proposed product specification. The company has set a target profit margin of 15 per cent on the proposed cost price. TNA has also projected for the cost of selling the excavator for R 500 000 upon introduction. Question 1 (1 point) Calculate the TNA's projected total sales for the excavator product line R 240 000 000 R420 000 000 R 1 800 000 Dennon 22C