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?

Answer rating: 100% (QA)

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