TB MC Qu. 15-74 Flagler Electronics currently sells a...

Flagler Electronics currently sells a camera for $330. An aggressive competitor has announced plans for a similar product that will be sold for $250. Flaglers marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is $220, and Flagler has a profit goal of 35% of sales. If Flagler meets competitive selling prices, what is the company's target cost?

Multiple Choice

$87.50.

$115.50.

$214.50.

$162.50.