Toyota Motor Corporation ('M) uses target cocting. Assume that Toyoto marketing personnel estimate that the competitive, average selling price for the Ravi in the upcomin model year will heed to be $20,100. Ascume further that the Ray4's total unit cost for the upcoming model year is estimated to be 516,100 and that Toyota requires a 20% profi margin on selung price (intich is equivalent to a 25% markip on total cost). a. What price will Toycto ettablash tot the Rovi for the upsoming model year? b. What impact will target osting have on Tovoto, given the assumed informaticn? Ioyote will haye to remove s20 from its total costs in arden to mainthin competitive pricing within its profit objectives. Faedseck - Chered Mon a. Determine what dictates the pnce. b. Fubtract the 20% desired profe from the estimated ence of 520,100 , tf the estimated monufecturing cout exceeds the target cost, then a campany will try ta cemave the daterence in ordet to reman posmpetitive