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:

Sampling Distribution

The layout of statistical probabilities derived from a random sample.

Sample Mean

The average value of a sample set of numbers, calculated by summing all the observations and dividing by the number of observations.

Miller Analogies Test

The Miller Analogies Test is a standardized test used primarily for graduate school admissions, assessing critical thinking and analytical reasoning through analogies.

Variance

A measure of the dispersion or spread of a set of data points around their mean value, indicating how spread out the data points are.