George Carlin Is Considering the Production of a New Line

George Carlin is considering the production of a new line of jeans. Based on preliminary market research, management has decided that each pair of jeans should be priced at $200. Furthermore, management believes that the profit margin should be 25 percent of sales revenue.
What is the target cost?

A) $ 50.00
B) $150.00
C) $112.00
D) $127.50