Winnebagel Corp. currently sells 39,000 motor homes per year at $58,500 each, an

Question

Winnebagel Corp. currently sells 39,000 motor homes per year at $58,500 each, and 15,600 luxury motor coaches per year at $110,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,700 of these campers per year at $15,600 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 5,850 units per year, and reduce the sales of its motor coaches by 1,170 units per year.

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

rev: 09_18_2012

$856,830,000

$598,260,000

$628,173,000

$568,347,000

$385,320,000

Winnebagel Corp. currently sells 39,000 motor homes per year at $58,500 each, and 15,600 luxury motor coaches per year at $110,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,700 of these campers per year at $15,600 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 5,850 units per year, and reduce the sales of its motor coaches by 1,170 units per year.

Explanation / Answer

Well, after calculating the above given information/data, we can say that the amount to use as the annual sales figure when evaluating this project will be:

$598,260000.

This is being done, given the per year unit of homes and reduction in the sale of motor coaches.

Regards.

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