Franco Electronics Currently Sells a Camera for $240

question 44

Multiple Choice

Franco Electronics currently sells a camera for $240. An aggressive competitor has announced plans for a similar product that will be sold for $205. Franco's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is $175, and Franco has a profit goal of 20% of sales. If Franco meets competitive selling prices, what is the company's target cost?

• A) $41.
• B) $48.
• C) $164.
• D) $175.
• E) $192.

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Definitions:

Sociologist

A sociologist is a social scientist who specializes in the study of societies, the behaviors and interactions of individuals within those societies, and the processes that preserve and change them.

Sample Size

The number of individuals or observations included in a study or survey, which can affect the reliability and validity of the research findings.

Funding

Financial support provided for a particular purpose, such as research, projects, or businesses.

Random Selection

A method of choosing individuals or items from a population in a way that each has an equal chance of being selected.