Target costing calculations and life cycle costs

A company is planning a new product. Market research information suggests that the new product

will sell $10,000$ total units at a price of $$21\mathrm{.}00$ per unit. The company estimates the lifetime costs of

the product as follows:

The company estimates that if it were to spend an additional $$15,000$ on design, then manufacturing

costs could be reduced.

a$)$ What is the target cost of the product if the company seeks a markup of $40\%$ of product

Round answer to two decimal places. $

Given the target cost, would you expect the company to launch the product?

b$)$ What is the maximum allowable product manufacturing cost per unit if the company seeks a

markup of $40\%$ of the original life$-$cycle cost?

Round answer to two decimal places. $

Using the total life$-$cycle cost to determine target product cost, would you expect the company

to launch the product?

c$)$ Assume the additional $$15,000$ was spent on design. By how much would the design changes

need to reduce the per unit product cost to meet the goal of a $40\%$ markup on total

life$-$cycle costs?

Round answer to two decimal places. $