Answer the Following Question(s)using the Information Below

question 130

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 the company wants to maintain its same income level, and marketing is correct (rounded to the nearest cent) ?

• A)$112.50
• B)$113.64
• C)$123.34
• D)$140.00
• E)$135.00

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