Expected sales mix is three of the small drives

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Say flash Co. adds a second line of flash drives (2GB rather than 1GB). A package of the 2 Gb flash drives will sell for$45 and have variable cost per unit of $20 per unit. The expected sales mix is three of the small drives (1GB) for every one large flash drive (2GB). Given this sales mix, how many of each type of flash drive will flash Co. need to sell to reach its target monthly profit of $ 260,000? Is this volume higher or lower than previous needed (in question 5) to achieve the same target profit? Why?

Reference no: EM13922834

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