Answer the Following Questions Using the Information Below

question 79

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

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

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Definitions:

Stored Elastic Strain

The energy accumulated in rocks as a result of tectonic forces, which can be released suddenly during an earthquake.

Fault

A crack in the Earth's crust resulting from the displacement of one side with respect to the other, often associated with, or the result of, seismic activity.

Elastic Manner

Describes a response to deformation where a material returns to its original shape after the stress causing the deformation is removed.

Subduction Zone

A region on Earth where one tectonic plate moves under another, often causing earthquakes and volcanic activity.