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Block Island TV currently sells large televisions for $ 3 6 0 . It has costs of $ 2 8 0 . A competitor is

Block Island TV currently sells large televisions for $360. It has costs of $280. A competitor is bringing a new large television to market that will sell for $300. Management believes it must lower the price to $300 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 100,000 televisions per year. What is the target cost if target operating income is 25% of the new sales price? A. $280 B. $90 C. $225 D. $75 E. $270

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