Answer the Following Questions Using the Information Below

question 77

Multiple Choice

Answer the following questions using the information below:
Block Island TV currently sells large televisions for $360. It has costs of $280. A competitor is bringing a new large television to market that will sell for $300. Management believes it must lower the price to $300 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 100,000 televisions per year.
-What is the target cost if target operating income is 25% of sales?

• A)$75
• B)$90
• C)$225
• D)$270

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Definitions:

Empowering Leadership

A leadership approach focused on giving team members autonomy, encouragement, and resources to make decisions and achieve goals.

Servant Leadership

A leadership philosophy that emphasizes the importance of serving others, focusing on the growth and well-being of people and communities.

Psychological Empowerment

The feeling of self-efficacy, autonomy, and importance that an individual experiences in their work, contributing to a sense of control over their tasks and outcomes.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.