Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" video player for a price of $280. It costs ECC $225 to make the player. ECC's main competitor is coming to market with a new video player that will sell for a price of $250. ECC feels that it must reduce its price to $250 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 18%. ECC currently sells 203,000 video players per year.

What is the target cost if target profit is 23% of sales and ECC must meet the competitive price of $250?

Answer rating: 100% (QA)

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