Winnebagel Corp. currently sells 29,100 motor homes per year at $78,500 each and

Question

Winnebagel Corp. currently sells 29,100 motor homes per year at $78,500 each and 8,100 luxury motor coaches per year at $120,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,100 of these campers per year at $24,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,700 units per year and reduce the sales of its motor coaches by 960 units per year. Required: What is the amount to use as the annual sales figure when evaluating this project?

Here is what I got so far:

78,500 * 3700=290,450,000
960 *120,500=115,680,000

Not sure about this one but i took

24,100 * 24,500=590,450,000

Explanation / Answer

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

Amount of Sales for project = Sales Increase - Sales Decrease

Amount of Sales for project = (24100 unit)($24,500) + (3700 units)($78,500) - (960 units)($120,500)

Amount of Sales for project = $765,220,000

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