1. Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" video player for a price of $310. It costs ECC $246 to make the player. ECC's main competitor is coming to market with a new video player that will sell for a price of $280. ECC feels that it must reduce its price to $280 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 206,000 video players per year. Irrespective of the competitor's price, what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced?

Multiple Choice

$328.00.

$313.00.

$340.50.

$347.00.

$356.50.