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Answer the Following Questions Using the Information Below

Question 137

Multiple Choice

Answer the following questions using the information below:
Silicon Technologies, currently sells 17" monitors for $270. It has costs of $210. A competitor is bringing a new 17" monitor to market that will sell for $230. Management believes it must lower the price to $230 to compete in the market for 17" monitors. Silicon believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Silicon's sales are currently 5,000 monitors per year.
-What is the target cost if the target operating income is 25% of sales?


A) $230.00
B) $207.00
C) $172.50
D) $115.00

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