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Saly's Computer Monitors Inc. currently sells 17 monitors for $270. It has costs of $210. A competitor is bringing a new 17 monitor to market
Saly's Computer Monitors Inc. 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. Saly's sales are currently 10,000 monitors per year. What is the target cost if operating income is 25% of sales? a. $210.00 b. $41.25 c. $202.50 d. $189.00 e. $168.75
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