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Sheltar's TV currently sells small televisions for$180. It has costs of$140. A competitor is bringing a new small television to market that will sell for$150.
Sheltar's TV currently sells small televisions for$180. It has costs of$140. A competitor is bringing a new small television to market that will sell for$150. Management believes it must lower the price to$150 to compete in the market for small televisions. Marketing believes that the new price will cause sales to increase by10%, even with a new competitor in the market.Sheltar's sales are currently100,000 televisions per year.
What is the target cost if target operating income is25% ofsales?
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