Winnebagel Corp. currently sells 21,600 motor homes per year at $32,400 each, an

Question

Winnebagel Corp. currently sells 21,600 motor homes per year at $32,400 each, and 8,640 luxury motor coaches per year at $61,200 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 15,120 of these campers per year at $8,640 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,600 units per year, and reduce the sales of its motor coaches by 936 units per year. The amount to use as the annual sales figure when evaluating this project is $.

Explanation / Answer

Winnebagel Corp. currently sells 21,600 motor homes per year at $32,400 each, and 8,640 luxury motor coaches per year at $61,200 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 15,120 of these campers per year at $8,640 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,600 units per year, and reduce the sales of its motor coaches by 936 units per year. The amount to use as the annual sales figure when evaluating this project is $.

The amount to use as the annual sales figure = (21600+3600)*32400 + (8640-936)*61200 + 15120*8640

The amount to use as the annual sales figure = $ 1,418,601,600

Answer

The amount to use as the annual sales figure when evaluating this project is $ 1,418,601,600

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.