Use the Information Below to Answer the Following Question(s)

question 14

Multiple Choice

Use the information below to answer the following question(s) .Block Island TV currently sells large televisions for $360.It has costs of $280.A competitor is bringing a new large television to market that will sell for $300.Management believes it must lower the price to $300 to compete in the market for large televisions.Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market.Block Island TV 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)$225.00
• B)$227.27
• C)$246.68
• D)$280.00
• E)$270

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Definitions:

Buying Center

The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.

Purchase Decision

The final decision made by a consumer after evaluating available options and deciding to buy a product or service.

Buying Center

A group of individuals within an organization who are involved in the process of making a purchasing decision.

Buying Criteria

The set of specifications or considerations that a consumer or organization uses to evaluate and select products or services.