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value: 2.00 points E4-19 Calculating Target Cost [LO 4-8] Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning

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value: 2.00 points E4-19 Calculating Target Cost [LO 4-8] Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates: Estimated market price Annual demand Life cycle Target profit $1,600 95,000 units 7 years 25% return on sales Required 1. Compute the target cost of this product. Target Cost 2. Compute the target cost if Majesty wants a 35 percent return on sales. Target Cost 3. Compute the target cost if Majesty wants a 8 percent return on sales. Target Cost

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