answer both case studies

Case #1 Miguel Inc. manufactures a product that has a selling price of $31.50 and costs a total of $24.48 per unit to produce. A competitor is introducing a comparable product that will sell $29.00 per unit. Management believes it must lower the price to $29.00 to compete in the highly competitive market. Marketing believes that the new price will maintain the current sales level. Currently, the company sells 300,000 units per year. Required (A) What is the target cost for the new price if the target operating income is 20% of sales? (B) If $29.00 is the new price and costs remain the same, what is the company's annual operating income? (C) What is the target cost per unit if the selling price is reduced to $29.00 and the company wants to maintain its same income that they would earn before making any changes? (D) What kinds of challenges or problems could arise if the company mismanages implementing target costing? Briefly discuss. Case #2 Pitt Company produces oak lumber that the company sells to furniture produces. A new customer has approached Pitt Company looking to purchase a special load of lumber. The customer has requested 1,500,000 metres of boards for a total of $7,182,000. To complete the order, Pitt Company will require half of the company's total monthly capacity. Total fixed costs per month will be $3,000,000 and variable costs are $3,750 per batch produced in which each batch contains 1,000 metres of boards. Required (A)Assuming Pitt Company has sufficient capacity for the order, should the company accept the order? (B) What is the minimum price per batch that Pitt Company would need to charge to accept the special order