Winnebagel Corp. currently sells 27,000 motor homes per year at $65,000 each, an

Question

Winnebagel Corp. currently sells 27,000 motor homes per year at $65,000 each, and 10,500 luxury motor coaches per year at $102,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 22,000 of these campers per year at $12,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,500 units per year, and reduce the sales of its motor coaches by 1,200 units per year. What is the amount to use as the annual sales figure when evaluating this project?

Explanation / Answer

before the project is undertaken net sales is

27000 * 65000 + 10500 * 102000 = 2,826,000,000

after the project is undertaken net sales is

29500 * 65000 + 9300 * 102000 + 22000 * 12500 = 3,141,100,000

So the net increase in sales is $315,100,000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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