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Author Question: Twenty Technologies, currently sells 17" monitors for $280. It has costs of $220. A competitor is ... (Read 15 times)

EY67

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Twenty Technologies, currently sells 17" monitors for $280. It has costs of $220. A competitor is bringing a new 17" monitor to market that will sell for $230. Management believes it must lower the price to $230 to compete in the market for 17" monitors. Twenty Technologies believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Twenty Technologies' sales are currently 5100 monitors per year.

What is the target cost if the target operating income is 25% of sales?
◦ $230.00
◦ $210.00
◦ $172.50
◦ $165.00


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Marked as best answer by EY67 on Mar 6, 2021

ttt030911

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EY67

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Reply 2 on: Mar 6, 2021
Wow, this really help


bassamabas

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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