Need Help with the following attachment Please show work 44

Need Help with the following attachment. Please show work

44) Target Costing. Nature Wood, Inc., makes wood tables for commercial use. The marketing t for a specific table that the company does not currentiy produce, and it expects that each table could be sold for S1,000. Management requires a profit of 30 percent of the selling price. Required. Determine the highest cost (target cost) would be willing to accept to produce this product

Solution

Target cost = Target selling price-Desired profit

                 = 1000-(1000*30%)

Target cost = $700