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Business, 08.02.2021 21:00 LForNotKnowingMath
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 $ 1,100 Annual demand 84,000 units Life cycle 5 years Target profit 25 % return on sales Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 39 percent return on sales. 3. Compute the target cost if Majesty wants a 6 percent return on sales.
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