Brook\'s is a specialty retailer of souvenir wear. Currently, the firm offer T-s

Question

Brook's is a specialty retailer of souvenir wear. Currently, the firm offer T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $18,000 of T-shirts, $9,000 of sweatshirts, and $1,800 of caps. The company is adding polo shirts to the line-up and projects that this addition will result in sales next year of $15,000 of T-shirts, $10,000 of sweatshirts, $9,500 of polo shirts, and $2,000 of caps. What amount of next year's revenue is from side effects of the additional product?

Explanation / Answer

Brook's is a specialty retailer of souvenir wear. Currently, the firm offer T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $18,000 of T-shirts, $9,000 of sweatshirts, and $1,800 of caps. The company is adding polo shirts to the line-up and projects that this addition will result in sales next year of $15,000 of T-shirts, $10,000 of sweats$9,500 of polo shirts, and $2,000 of caps. What amount of next year's revenue is from side effects of the additional product? in Dollars T Shirts Sweatshirts Caps Total Sales Current Annual Sales            18,000               9,000                      1,800 $       28,800 T Shirts Sweatshirts Polo Shirts Caps Total Sales Next Year's Sales Projections            15,000            10,000                      9,500             2,000            36,500 by Adding a new Product Line -Polo Shirts Side Effect of Additional Product              7,700 Total Estimated Next Year' Sales- Current Annual Sales

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