Multiple Choice
Franklin Electronics currently sells a camera for $240. An aggressive competitor has announced plans for a similar product that will be sold for $205. Franklin'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 camera is $175, and Franklin has a profit goal of 20% of sales. If Franklin meets competitive selling prices, what is the company's target cost?
A) $41.
B) $48.
C) $164.
D) $175.
E) $192
Correct Answer:
Verified
Correct Answer:
Verified
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