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Block Island TV currently sells large televisions for exist360. It has costs of S280. A competitor is bringing a new large television to market that

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Block Island TV currently sells large televisions for exist360. It has costs of S280. A competitor is bringing a new large television to market that will sell for S300. Management believes it must lower the price to exist300 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 sales? A) exist75 B) exist90 C)exist225 D)exist270 What is the change in operating income if marketing is correct and only the sales price is changed? A) exist2, 200,000 B) exist600,000 C) S(2, 200,000) D) exist(5, 800,000) What is the target cost if the company wants to maintain its same income level, and marketing is correct (rounded to the nearest cent)? A) exist225.00 B) exist227.27 C) S246.68 D) exist280.00

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