Answer the Following Question(s)using the Information Below

question 18

Multiple Choice

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

• A)$168.75
• B)$170.46
• C)$185.00
• D)$210.00
• E)$202.50