Electronic Component Company Is a Producer of High-End Video and Music

Multiple Choice

Electronic Component Company is a producer of high-end video and music equipment.ECC currently sells its top of the line "ECC" DVD player for a price of $250.It costs ECC $210 to make the player.ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220.ECC feels that it must reduce its price to $220 in order to compete.The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%.ECC currently sells 200,000 DVD players per year.
Irrespective of the competitor's price,what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced?

A) $280.00.
B) $292.50.
C) $299.00.
D) $308.50.
210/.75 = $280