Electronic Component Company (ECC) Is a Producer of High-End Video

question 53

Multiple Choice

Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" video player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new video player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 video players per year.

Irrespective of the competitor's price, what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced?

• A) $280.00.
• B) $292.50.
• C) $299.00.
• D) $308.50.

Understand gender role development and its societal influences.

Comprehend the nature and significance of empathy and prosocial behavior in children.

Recognize the role of emotion regulation in children's social development and its impact on behavior.

Explore the concept of socialization and its foundational role from birth in personality and social development.

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Definitions:

MPC

Marginal Propensity to Consume, which indicates the proportion of additional income that a household is likely to spend on consumption rather than saving.

Disposable Income

The capital available to households for deploying into savings and spending post-tax.

Consumption

The act of using goods and services by households that leads to a decrease in their stock.

Disposable Income

Budget available for households to direct towards saving and spending post-income tax assessment.