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 include the dollar sign ($).)

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.

Explanation / Answer

(29,300+3,900)*79,500 +(8,300-980)*121,500 +24,300*25,500= 4,148,430,000

135,900- 0.35(135900-885600*3/9)= 135,900 +55,755= 191,655. (tax loss on sale of equipment).

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