Use the Information Below to Answer the Following Question(s)

question 132

Multiple Choice

Use the information below to answer the following question(s) .Acorn Products currently sells small boats for $360.It has costs currently assigned to it of $280.A competitor is bringing a new small boat to market that will sell for $300.Management believes it must lower the price to $300 to compete in the market for small boats.Marketing believes that the new price will cause sales to increase by 10 percent, even with a new competitor in the market.Acorn's sales are currently 100,000 per year.
-What is Acorn's target cost if the company wants to maintain its same income level, and marketing is correct?

• A)$280.00
• B)$270.00
• C)$252.00
• D)$236.27
• E)$227.27

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