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:

Auditory Nerve

is a cranial nerve that transmits sound information from the cochlea in the inner ear to the brain for processing and interpretation.

Inner Hair Cells

Sensory cells located in the cochlea of the inner ear, responsible for converting sound vibrations into electrical signals that are sent to the brain.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body.

Auditory Route

A pathway in the brain that processes auditory information from the ears to the auditory cortex.