Block Island TV Currently Sells Large Televisions for $380

question 131

Multiple Choice

Block Island TV currently sells large televisions for $380. It has costs of $290. A competitor is bringing a new large television to market that will sell for $320. Management believes it must lower the price to $320 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 120,000 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) $224.00
• B) $238.18
• C) $230.00
• D) $290.00

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Definitions:

A-type Conflict

Refers to affective conflict where disagreements among individuals are due to personal issues, emotions, and matters unrelated to work tasks.

C-type Conflict

"Cognitive" type conflict, which involves disagreements in ideas, opinions, or points of view, often seen as beneficial for problem-solving and innovation.

Conflict Strategies

Methods or approaches used to handle or resolve disagreements and disputes.

Conflict Strategy

An approach or plan developed to navigate or resolve a disagreement or dispute.