Winnebagel Corp. currently sells 35,000 motor homes per year at $73,000 each, an

Question

Winnebagel Corp. currently sells 35,000 motor homes per year at $73,000 each, and 14,500 luxury motor coaches per year at $110,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 30,000 of these campers per year at $16,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,300 units per year, and reduce the sales of its motor coaches by 1,000 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.)

Annual sales = $______________

Explanation / Answer

35000 Motor Homes Per Year @ Price=$73,000 Each

14500 Motor Coaches Per Year @ Price=$110,000 Each

After Portable Camper is Being Introduced

35,000+2300=37,300 Motor Homes Per Year @ Price=$73,000 Each, Due to Boost

14,500-1000=13,500 Motor Coaches Per Year @ Price=$110,000 Each, Due to Reduction

30,000 Portable Camper Per Year @ Price=$16,500 Each, Due to introduction of new product line

Annual Sales=$(37,300 X 73,000 + 13,500 X 110,000 + 30,000 X 16,500)=4,70,29,00,000

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