A product costs $ 600 to manufacture and $ 40 to market and $ 20 to distribute (ship to customers.) R&D costs are allocated at $ 30 per unit. Based on a targeted rate of return, manager uses a markminus up of 20 %. What is the prospective selling price based on a Costminus Plus pricing approach?

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? (Round your answer to the nearest cent.)

a. $290.00

B.$238.18

C.$224.00

D.$230.00