Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Block Island TV currently sells large televisions for $360. It has costs of $280. A competitor is bringing a new large television to market that will sell for $300. Management believes it must lower the price to $300 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 100,000 televisions per year.
-What is the target cost if the company wants to maintain its same income level,and marketing is correct (rounded to the nearest cent) ?

A) $225.00
B) $227.27
C) $246.68
D) $280.00