Answer the Following Questions Using the Information Below

question 137

Multiple Choice

Answer the following questions using the information below:
Silicon Technologies, 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 $230. Management believes it must lower the price to $230 to compete in the market for 17" monitors. Silicon believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Silicon's sales are currently 5,000 monitors per year.
-What is the target cost if the target operating income is 25% of sales?

• A) $230.00
• B) $207.00
• C) $172.50
• D) $115.00

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Definitions:

Goodwill

A term in both accounting and general usage that refers to the established reputation of a business considered as a quantifiable asset.

Audience's Needs

The requirements or interests of the group to whom information is being communicated.

You-attitude

A communication approach focusing on the receiver’s needs and interests, emphasizing the benefits to them.

Store Manager

An individual responsible for overseeing the daily operations of a retail store, including managing staff and ensuring customer satisfaction.