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 by10%, even with a new competitor in the market. Block Island TV sales are currently100,000 televisions per year.

What is the target cost if target operating income is25% of the new salesprice?