Winnebagel Corp. currently sells 29,700 motor homes per year at $81,500 each and

Question

Winnebagel Corp. currently sells 29,700 motor homes per year at $81,500 each and 8,700 luxury motor coaches per year at $123,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,700 of these campers per year at $27,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,300 units per year and reduce the sales of its motor coaches by 1,020 units per year.

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

4.398 billion and 3.697 billion is incorrect

Winnebagel Corp. currently sells 29,700 motor homes per year at $81,500 each and 8,700 luxury motor coaches per year at $123,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,700 of these campers per year at $27,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,300 units per year and reduce the sales of its motor coaches by 1,020 units per year.

Explanation / Answer

Annual Figure Sales = [(29,700 + 4,300) x $81,500] + [(8,700 - 1,020) x $123,500] + (24,700 x $27,500)

.................................= (34,000 x $81,500) + (7,680 x $123,500) + (24,700 x $27,500)

.................................= $2,771 million + $948.48 million + $679.25 million

.................................= $4,398.73

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.