Winnebagel Corp. currently sells 37,000 motor homes per year at $75,000 each, an

Question

Winnebagel Corp. currently sells 37,000 motor homes per year at $75,000 each, and 15,500 luxury motor coaches per year at $112,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 32,000 of these campers per year at $17,500 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? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)

Winnebagel Corp. currently sells 37,000 motor homes per year at $75,000 each, and 15,500 luxury motor coaches per year at $112,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 32,000 of these campers per year at $17,500 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? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)

Explanation / Answer

Portable camper sales $ 560,000,000 17500*32000 Add: Increase in motor homes sales $ 187,500,000 2500*75000 Less: Decrease in luxury motor coaches $ 134,400,000 1200*112000 Relavant sales figure $ 613,100,000

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