Answer the Following Questions Using the Information Below

question 40

Multiple Choice

Answer the following questions using the information below:
Ace Books Company currently sells eBook readers for $270.It has costs of $210.A competitor is bringing a new eBook reader to market that will sell for $225.Management believes it must lower the price to $225 to compete in the market for eBook readers.Marketing believes that the new price will cause sales to increase by 10%,even with a new competitor in the market.Ace's sales are currently 10 000 eBook readers per year.
-What is the target cost if operating profit is 25% of sales?

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

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Definitions:

Live Births

The number of babies born alive in a given time period and region.

Demographic Transition Theory

A concept explaining how a nation moves from having high birth and death figures to low ones as it progresses from a pre-industrial to an industrial economic system.

Preindustrial

pertains to the period or society before the widespread adoption of industrialization, characterized by agrarian economies and limited technological advancement.

Uncontrollable Disease

A disease that cannot be effectively managed or restrained through medical intervention or lifestyle changes.