Answer the following question(s) using the information below. Sheltar's 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 $160. Management believes it must lower the price to $160 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. Sheltar's sales are currently 100,000 televisions per year. What is the target cost if target operating income is 25% of sales?

Select one:

A. $105.00

B. $145.00

C. $140.00

D. $120.00

E. $135.00