Question$($s$)$: To compute a target cost, the company determines its target selling price. Once the target selling price is set, it determines its target cost by setting a desired profit. The difference between the target price and desired profit is the target cost of the product. Cost$-$plus pricing involves establishing a cost base and adding to this cost base a markup to determine a target selling price.

How does this relate to real$-$world prices we see every day? How would a business employ these methods on volatile$-$priced products like we've seen the past few months with eggs and gasoline? Is it even possible to use these methods on products like these? Why or why not?