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sofia97 sofia97
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A year ago
Block Island 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. Block Island TV sales are currently 110,000 televisions per year.

What is the target cost per unit if target operating income is 35% of sales?
A) $108.50
B) $133.00
C) $201.50
D) $247.00
Textbook 

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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askhat9askhat9
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Posts: 224
A year ago
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 C
Explanation:  $310 - ($310  0.35) = $201.50
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Teacher approved lol, you're flippin awesome
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thanks!
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thxs
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