Winnebagel Corp. currently sells 28,200 motor homes per year at $42,300 each, an

Question

Winnebagel Corp. currently sells 28,200 motor homes per year at $42,300 each, and 11,280 luxury motor coaches per year at $79,900 each. The company wants to introduce a new portable camper to fill out its product line. It hopes to sell 19,740 of these campers per year at $11,280 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,700 units per year, and reduce the sales of its motor coaches by 1,222 units per year. What is the amount that should be used as the annual sales figure when evaluating this project

Explanation / Answer

Sales = (19,740 $11,280) + (4,700 $42,300) + (-1,222 $79,900) = $323,839,400

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