Winnebagel Corp. currently sells 29,300 motor homes per year at $79,500 each and

Question

Winnebagel Corp. currently sells 29,300 motor homes per year at $79,500 each and 8,300 luxury motor coaches per year at $121,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,300 of these campers per year at $25,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,900 units per year and reduce the sales of its motor coaches by 980 units per year.

What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations.)

What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations.)

Explanation / Answer

Net sales = Number of motor homes * Price + Number of Luxury motor * Price + Number of new campr * Price

so According to analyst = > Number of motor homes = 29300 + 3900 = 33200

Number of Luxury motor = 8300 - 980 = 7320

Number of new campr = 24300

Net sales = 33200*79500 + 7320*121500 + 24300*25500 = 4148430000

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