Chegg Home studytools v Mycourses Vv Mybooks Myfolder Career Life Find solutions for your homework [Search] Question: Marcon Tech Corp, currently sells radios for $7,000. It has cos: Marcon Tech Corp, curently sel rads for $7,000, has cost of 5.400, &compettoris bringing a new ra to make! that mt se for $5,850. Maragementbeves must lower he price to $5,850 to compels Inthe markt fr radios. The marking partment below thal the new pie lease sales 1 intease by 10%, even wth anew comaatitor i the markt Marcon sales ae currently 1,000 radios pr year. Requite |What's the change in operating income f markt Geparrmentiscorect and ony the sles prices changed? Whats the arget cost fhe compary wants ta maintain its same income level. and marketing Expert Answer iacrones vwostsaromerapar [x0 | [5 Selig Fri 7000 conte 5400) Post a question Enter question Co! ue to post My Textbook Solutions Lethe sales box ‘Operating neome = 2x variable cost 5940000 Now ‘Selinger "2500071100 6750 “The arg seling ce wlbe $6750,Chegg ome Study tools ¥ My courses v My books Myfolder Career Life Sees 7000000 7425000 cont ‘5400000 5540000 Income 1600000 1485000 “The operating income wl decree by 's15000 | 1600000. 1485000) €_| Fhe company wants to maintain he cost shold be 715000/:00 104SA5455 Deceare incor 5400-105, 5295 “The target cost shoul be $5295 canner» Questions viewed by other students (: Warthog Avionics curently sells radi forex, £00. Ithas costs of exs2 800. A competitor is ringing anew aco to marie tha wile fo ext, 200 Management beleves it mas loner tne pice Io ext, 209 to competen the ‘market fx radios. Maetng believes hat he ne price wl use sles to nrease by 10%, even with anew competitor in he mart Warthog A Seeanewer 0 ntea) 1: Fick’ Co, current sls boas fr $1000 ithas costs of $600. A compestor's bringing anew boa tothe market that wil sl for $800 to compete inthe ark, management believes ot must loner the pie to $800 the marketing “Separiment Believes thag the nvr pie sil use sales to nreaee Dy 20% even sith anew competion nthe market the companys curent sles of Irselecul Property gn Chap Sty Hep Soe Mara