Calculating Target Cost Pawkins Company uses target costing to ensure that its products are profitable. Assume Pawkins is planning to introduce a new product with the following estimates: Required: 1....

Pawkins Company uses target costing to ensure that its products are profitable. Assume Pawkins is planning to introduce a new product with the following estimates:

Required:

1. Compute the target cost of this product.

2. Compute the target cost if Pawkins wants a 35 percent return on sales.

3. Compute the target cost if Pawkins wants a 10 percent return on sales.