Jamie\'s Motor Home Sales currently sells 1,100 Class A motor homes, 2 s conside

Question

Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2 s considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper i Jamie expects that her Class A sales will decline to 850 units while the Class C canm affected. Class A motor homes sell for an average of $140,000 each. Class C homes are priced at $59,500 and the each. The new mid-range camper will sell for $42,900. What is the erosion cost of adding the mid-range camper? s currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2.800 pop-up trailers each year. Jamie s added, per sales decline to 2,000. The sales of pop-ups will not be pop-ups sell for $5,000 $54,250,000 $78.750,000 O $46,900,000 o $53,750,000 O $63,150,000

Explanation / Answer

Answer is 46900000

A Motor Home C Motor Home Pop Taillers Total Units 1100 2200 2800 Selling Price 140000 59500 5000 Revenue 154000000 130900000 14000000 298900000 After introducing Mid range Change in Revenue Units 850 2000 2800 Selling Price 140000 59500 5000 Revenue 119000000 119000000 14000000 252000000 Change in Revenue or Erosion Cost 46900000

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