Multiple Choice
Answer the following questions using the information below:
Ace Books Company currently sells eBook readers for $270.It has costs of $210.A competitor is bringing a new eBook reader to market that will sell for $225.Management believes it must lower the price to $225 to compete in the market for eBook readers.Marketing believes that the new price will cause sales to increase by 10%,even with a new competitor in the market.Ace's sales are currently 10 000 eBook readers per year.
-What is the target cost if operating profit is 25% of sales?
A) $56.25
B) $202.50
C) $168.75
D) $67.50
Correct Answer:
Verified
Correct Answer:
Verified
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