=+El2-18 Target costing Obj 2 Toyota Motor Corporation uses target costing. Assume that Toyota marketing personnel esti¬

mate that the competitive selling price for the Camry in the upcoming model year will need to be $34,000. Assume further that the Camrys total manufacturing cost for the upcoming model year is estimated to be $28,500 and that Toyota requires a 20% profit margin on selling price

(which is equivalent to a 25% markup on product cost).