Assume that you work for a company that wants to develop a product to compete with Palm’s Zire. You have been assigned the task of using target costing to help in its development. Do a search for Zire product reviews and product specifications and get price quotes. Why would your company’s management want to use target costing to help in its development of a competitive PDA? What retail price would you suggest be used as a basis for target costing? Assuming a desired profit of 25 percent of selling price, what is the resulting target cost? What actions should the company take now?