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Question: silicon technologies currently sells 17quot monitors for 270 it has...

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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. 7. 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 8. What is the change in operating income if marketing manager is correct and only the sales price is changed? A) $200,000 B) $190,000 C) $(190,000) D) $(200,000)

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