Assumptions:

average ASP = $10.00

A) What is the price of the mainstream product

a) Gross margin = Gross Profit / Price

B) What is the price of the High End Product? 

C)What is the cost of the High End Product @ 60% Gross Margin = ? 

D) How much incremental cost can be added to the mainstream product before the Gross Margin of the High End Product drops below 60 %? Assume the Mainstream product is the platform for the High End product .

Shipment Shares High End 30 % Mainstream 70% Product Cost TBD $ 5.00 Gross Margin 60% 40 %