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  3. majesty company uses target costing to ensure that

Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is...

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Accounting

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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 $1,100 85,000 units 5 years 30% retum 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 5 percent return on sales Target Cost

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