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Say General Manufacturing adds a second line of flash drives (32 GB in addition to 16 GB). A unit…

Say General Manufacturing adds a second line of flash drives (32 GB in addition to 16 GB). A unit of the 32 GB flash drives will sell for $50 and have variable cost per unit of $27 per unit. The expected sales mix is nine of the smaller flash drives (16 GB) for every one larger flash drive (32 GB). Given this sales mix, how many of each type of flash drive will General need to sell to reach its target monthly profit of $260,100? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why?

 

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