pittmanvee5851 pittmanvee5851

25-02-2024
Business

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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 $ 2,100 Annual demand 97,000 units Life cycle 4 years Target profit 27 % return on sales Required:
1. Compute the target cost of this product.
2. Compute the target cost if Majesty wants a 38 percent return on sales.
3. Compute the target cost if Majesty wants a 10 percent return on sales.

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