urgent please

Question 5 Pricing Decisions (5 marks) 2 Warthog Avionics currently sells radios for $3,600. It has costs of $2,800. A competitor is bringing a new radio to market that will sell for $3,200. Management believes it must lower the price to $3,200 to compete in the market for radios. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Warthog's sales are currently 1,000 radios per year. Required: a. What is the target cost if target operating income is 25% of sales? (1 mark) What is the change in operating income if marketing is correct and only the sales ice is changed? (2 marks) 1 c. What is the target cost if the company wants to maintain its same income level, and marketing is correct? (2 marks)