Winnebagel Corp. currently sells 29,000 motor homes per year at $78,000 each and

Question

Winnebagel Corp. currently sells 29,000 motor homes per year at $78,000 each and 8,000 luxury motor coaches per year at $120,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,000 of these campers per year at $24,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,600 units per year and reduce the sales of its motor coaches by 950 units per year.

Required: What is the amount to use as the annual sales figure when evaluating this project?

Net sales$ =

Explanation / Answer

Annual sales figure for project: New portable camper sales $ 576,000,000 24000*24000 Add: Increase in sale of exisiting motor homes $ 280,800,000 3600*78000 Less: Decrease in sale of motor coaches $ 114,000,000 950*120000 Net sales $ 742,800,000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

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