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Adrian s TV currently sells small televisions for $ 1 8 0 . It has costs of $ 1 4 0 . A competitor is

Adrians TV currently sells small televisions for $180. It has costs of $140. A competitor is bringing a new small television to market that will sell for $150. Management believes it must lower the price to $150 to compete in the market for small televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Adrians sales are currently 100,000 televisions per year.
What is the new target cost per unit if profit margin is 25% of sales?
Select one:
a.
$112.50
b.
$135.00
c.
$45.00
d.
$37.50

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