Answer the Following Questions Using the Information Below

question 131

Multiple Choice

Answer the following questions using the information below:
Perth TV currently sells flat screen televisions for $180.It has costs of $140.A competitor is bringing a new flat screen television to market that will sell for $150.Perth believes it must lower the price of its television sets to $150 to remain competitive.Marketing believes that the new price will cause sales to increase by 10%,even with the new competitor in the market.Perth'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)$140.00
• B)$113.64
• C)$123.34
• D)$112.50

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Definitions:

Business Information System

Systems that process data and convert it into information and knowledge, supporting decision-making processes in an organization.

Consumer Level

Refers to products, services, or technologies designed for the general public rather than for professionals or businesses.

Primary Key Field

In a database, a field that has a value unique to a record.

Primary Keys

Unique identifiers within a database table that distinguish each record.