Winnebagel Corp. currently sells 29,300 motor homes per year at $79,500 each and
ID: 2805781 • Letter: W
Question
Winnebagel Corp. currently sells 29,300 motor homes per year at $79,500 each and 8,300 luxury motor coaches per year at $121,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,300 of these campers per year at $25,500 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,900 units per year and reduce the sales of its motor coaches by 980 units per year.
What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Net sales $
Explanation / Answer
Answer:
Evaluation of the project
Amount($)
New Portable camper sale
619650000
(24300*25500)
Add: Increased sale of motor homes
310050000
(3900*79500)
Less: Decrease sale of motor coaches
119070000
(980*121500)
Net increased sales
$810630000
Amount($)
New Portable camper sale
619650000
(24300*25500)
Add: Increased sale of motor homes
310050000
(3900*79500)
Less: Decrease sale of motor coaches
119070000
(980*121500)
Net increased sales
$810630000
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