Answer the Following Question(s)using the Information Below

question 50

Multiple Choice

Answer the following question(s) using the information below.Sheltar's TV currently sells small televisions for $180.It has costs of $140.A competitor is bringing a new small television to market that will sell for $150.Management believes it must lower the price to $150 to compete in the market for small televisions.Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market.Sheltar's sales are currently 100,000 televisions per year.
-What is the target cost if target operating income is 25% of sales?

• A)$105.00
• B)$145.00
• C)$140.00
• D)$135.00
• E)$112.50

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Definitions:

Grit

A personal quality that combines resilience, determination, and perseverance toward long-term goals, despite obstacles or failures.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture.

Startup

A young company founded to develop a unique product or service, bring it to market, and make it scalable, often characterized by innovation and rapid growth.

Grit

A character trait characterized by perseverance and passion for achieving long-term goals, often associated with resilience and determination.