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What is the target cost

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Question - 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 $440. It costs ECC $305 to make the player. ECC's main competitor is coming to market with a new video player that will sell for a price of $410. ECC feels that it must reduce its price to $410 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 21%. ECC currently sells 219,000 video players per year. What is the target cost if target profit is 26% of sales and ECC must meet the competitive price of $410?

Reference no: EM133174502

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