1. Fastener Inc. produces heavy duty fastener plates for commercial construction. These plates sell at a price of $250. It costs Fastener $210 to make the plates. Fastener's main competitor is coming to market with a new plate that will sell for a price of $220. Fastener feels that it must reduce its price to $220 in order to compete. The sales and marketing department of Fastener believes the reduced price will cause sales to increase by 15%. Fastener currently sells 200,000 plates per year.

1. Excluding of the competitor's price for now, calculate Fastener's required selling price if the target profit is 25% of sales and current costs cannot be reduced?
2. If Fastener reduces the selling price to $220, what is the target cost to maintain profit of 25% of sales?