Quantum Enterprises Currently Sells a Piece of Luggage for $200

Multiple Choice

Quantum Enterprises currently sells a piece of luggage for $200.An aggressive competitor has announced plans for a similar product that will be sold for $170.Quantum's 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 luggage is $130,and Quantum has a profit goal of 30% of sales.If Quantum meets competitive selling prices,what must happen to the company's manufacturing and distribution cost?

A) Nothing,because the costs are within defined ranges and can actually increase by $10.
B) Nothing,because the costs are within defined ranges and can actually increase by $23.
C) Costs must decrease by $11.
D) Costs must decrease by $39.
E) None of thesE.