Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Perth TV currently sells flat screen televisions for $180.It has costs of $140.A competitor is bringing a new flat screen television to market that will sell for $150.Perth believes it must lower the price of its television sets to $150 to remain competitive.Marketing believes that the new price will cause sales to increase by 10%,even with the new competitor in the market.Perth's sales are currently 100 000 televisions per year.
-What is the target cost if target operating profit is 25% of sales?

A) $45.00
B) $135.00
C) $112.50
D) $37.50