Winnebagel Corp. currently sells 26,000 motor homes per year at $64,000 each, an

Question

Winnebagel Corp. currently sells 26,000 motor homes per year at $64,000 each, and 10,000 luxury motor coaches per year at $101,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 21,000 of these campers per year at $12,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,300 units per year, and reduce the sales of its motor coaches by 1,000 units per year. What is the amount to use as the annual sales figure when evaluating this project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

Explanation / Answer

Campers sale revenue $ 252,000,000 21000*12000 Add: Increase in motor homes sales $ 147,200,000 2300*64000 Less: Decrease in luxury motor coaches $ 101,000,000 1000*101000 Annual sales figure $ 298,200,000

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