Answer the Following Questions Using the Information Below

question 82

Multiple Choice

Answer the following questions using the information below:
Frank's Computer Monitors, Inc., currently sells 17" monitors for $270. It has costs of $210. A competitor is bringing a new 17" monitor to market that will sell for $225. Management believes it must lower the price to $225 to compete in the market for 17" monitors. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Frank's sales are currently 10,000 monitors per year.
-What is the target cost if operating income is 25% of sales?

• A)$56.25
• B)$67.50
• C)$168.75
• D)$202.50

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Definitions:

Goods Packaged

Refers to products that have been wrapped, boxed, or presented in some form of packaging before sale or shipment.

Uniform Electronic Transactions Act

Legislation adopted by some jurisdictions to establish legal equivalence between electronic records and signatures and their paper counterparts, facilitating the legality of digital transactions.

UETA

The Uniform Electronic Transactions Act, which establishes legal recognition for electronic signatures and records in commercial transactions.

Electronic Transactions

Deals or exchanges of goods, services, or information conducted over electronic systems such as the internet.