Now, if the standard markup of 43 percent is applied, the price would be $ 151, well within the other firms' price of $ 155. As you can see, target costing is an iterative process. Chris will go through the cycle until she either achieves the target cost or determines that she cannot. Note, however, that target costing has given Chris a chance to develop a profitable market, a chance she might not have had if the original cost-based price had been set.