Answer the Following Question(s)using the Information Below

question 142

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 operating income is 25% of sales?

• A)$189.00
• B)$41.25
• C)$210.00
• D)$202.50
• E)$168.75

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Definitions:

Trampling

The damage to vegetation or soil compaction caused by heavy foot or vehicle traffic.

Overgrazing

The depletion of vegetation due to livestock grazing at a higher density than the land can sustainably support, leading to soil erosion and desertification.

Aquaculture

The cultivation of aquatic organisms such as fish, shellfish, and seaweeds in controlled environments, intended for consumption or other human use.

Environmental Impacts

The effects of human activities or natural processes on the environment, including air and water quality, biodiversity, and climate.