Green Woods sells specialty equipment for mountain climbers. Its sales for last
ID: 2770191 • Letter: G
Question
Green Woods sells specialty equipment for mountain climbers. Its sales for last year included $238,000 of tents and $411,000 of climbing gear. For next year, management has decided to sell specialty sleeping bags also. As a result of this change, sales projections for next year are $264,000 of tents, $426,000 of climbing gear, and $51,000 of sleeping bags. How much of next year's sales are derived from the side effects of adding the new product to its sales offerings?
A. $0
B. $20,500
C. $41,000
D. $51,000
E. $82,000
Explanation / Answer
Solution:
Last year sales = 238000 + 411000
= 649000
Next year sales = 264000 + 426000 + 51000
= 741000
Effect = 741000-649000
= $ 92000
Answer should be 92000 which is not there in any of the options.
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