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Franco Electronics currently sells a camera for $310. An aggressive competitor has announced plans for a similar product that will be sold for $240. Franco's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is $210, and Franco has a profit goal of 35% of sales. If Franco meets competitive selling prices, what is the company's target cost?
$84.00.
$210.00.
$108.50.
$156.00.
$201.50.
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