Winnebagel Corp. currently sells 33,000 motor homes per year at $71,000 each, an

Question

Winnebagel Corp. currently sells 33,000 motor homes per year at $71,000 each, and 13,500 luxury motor coaches per year at $108,000 each. The company wants to introduce a new portable camper to fill out its product linl; it hopes to sell 28,000 of these campers per year at $15,500 each. An independant consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,400 units per year, and reduce the sales of its motor coaches by 1,100 unites per year. What is the amount to use as the annual sales figure when evaluating this project?

Explanation / Answer

Annual sales figure = ((33000+2400)*71000)+(13500-1100)*108000)+(28000*15500)

= 2513400000+1339200000+434000000

= 4286600000

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