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

---

Definitions:

Emotionality

Refers to the intensity and range of emotional responses observed in an individual.

Dark Triad

A psychological concept that encompasses three negative personality traits: narcissism, Machiavellianism, and psychopathy.

Narcissism

A pattern of self-centered, arrogant thinking and behavior, a lack of empathy and consideration for other people, and an excessive need for admiration.

Inflated Sense

An exaggerated or overly high perception of oneself, often without sufficient reason or evidence.