currently sells 17 monitors for $270. It has costs of $210. A competitor is bringing a new 17 monitor to market that will sell for $225. Management believes it must lower the price to $225 to compete in the market for 17 monitors. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. , Inc.s sales are currently 10,000 monitors per year.

3. What is the target cost if target profit is 25% of sales (rounded to the nearest cent)? a. $56.25 b. $67.50 c. $168.75 d. $202.50

4. Using the information above, what is the target selling price if costs cannot be reduced and target profit is changed to 20% of sales (rounded to the nearest cent)? a. $252.00 b. $262.50 c. $265.00 d. $270.00