Franklin Electronics Currently Sells a Camera for $240

question 62

Multiple Choice

Franklin Electronics currently sells a camera for $240. An aggressive competitor has announced plans for a similar product that will be sold for $205. Franklin's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is $175, and Franklin has a profit goal of 20% of sales. If Franklin meets competitive selling prices, what is the company's target cost?

• A)$41.
• B)$48.
• C)$164.
• D)$175.
• E)$192

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Definitions:

Late

Occurring or coming after the usual, expected, or planned time.

Chunking

A memory technique that involves grouping pieces of information together into larger, more manageable units.

Meaningful Units

Smallest segments of language that carry semantic meaning, such as words or morphemes.

Short-term Memory

Holding a minimal amount of details in an alert, easily retrievable condition in the memory for a short time span.