Winnebagel Corp. currently sells 28,800 motor homes per year at $77,000 each and
ID: 2759021 • Letter: W
Question
Winnebagel Corp. currently sells 28,800 motor homes per year at $77,000 each and 7,800 luxury motor coaches per year at $119,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,800 of these campers per year at $23,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,400 units per year and reduce the sales of its motor coaches by 930 units per year.
What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations.)
Required:What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations.)
Explanation / Answer
Product Unit sold Price Sales Motor homes 3400 77000 261800000 Luxury motor coaches - 930 119000 - 110670000 New portable camper 23800 23000 547400000 Annual sales 698,530,000
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