Winnebagel Corp. currently sells 20,400 motor homes per year at $30,600 each, an
ID: 2740772 • Letter: W
Question
Winnebagel Corp. currently sells 20,400 motor homes per year at $30,600 each, and 8,160 luxury motor coaches per year at $57,800 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 12,920 of these campers per year at $8,160 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,060 units per year, and reduce the sales of its motor coaches by 612 units per year.
What is the amount to use as the annual sales figure when evaluating this project?
Explanation / Answer
Portable camper sales $ 105,753,600 12960*8160 Add: Increase in motor homes sales $ 93,636,000 3060*30600 Less: Decrease in luxury motor coaches $ 35,373,600 612*57800 Relavant sales figure $ 164,016,000
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