XYZ Corp projects sells 3 different products: Phones, TV's and Computers. Sales mixes and margins are 27%,
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XYZ Corp projects sells 3 different products: Phones, TV's and Computers. Sales mixes and margins are 27%, 41%, and 32% and 54%, 35%, and 20% respectively. Fixed expenses are projected to be $500,000. The company desires a target profit of $250,000. After running initial projections, new competitor information suggests that TV sales will struggle, and as such their sales mix will drop to 37% with Phones and Computers equally absorbing the sales mix lost by TV's. Margins on TV's are expected to decrease by 20% from its current level (i.e. if the margin was 10 a 20% drop would be 2, leaving 8). If the desired target profit did not change, what is the difference in desired sales needed for TV's given the original and new projections?
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