Padar TV currently sells large televisions for $$380.$ It has costs of $$290.$ A competitor is bringing a new large television to market that will sell for $$310.$ Management believes it must lower the price to $$310$ 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. Padar TV sales are currently $110,000$ televisions per year.

What is the target cost per unit if target operating income is $35\%$ of sales?

What is the change in operating income if marketing is correct?

What is the target cost if the company wants to maintain its same income level, and marketing is correct?