What is the amount to use as the annual sales figure when evaluating this project? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Net sales $ 81,063,000 X

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 9-2 Relevant Cash Flows [LO 1]
Winnebagel Corporation currently sells 29,300 motor homes per year at
$79,500 each and 8,300 luxury motor coaches per year at $121,500 each. The
company wants to introduce a new portable camper to fill out its product line; it
hopes to sell 24,300 of these campers per year at $25,500 each. An
independent consultant has determined that if the company introduces the
new campers, it should boost the sales of its existing motor homes by 3,900
units per year and reduce the sales of its motor coaches by 980 units per year.
What is the amount to use as the annual sales figure when evaluating this
project?
Note: Do not round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.
Net sales
$
81,063,000 X
Transcribed Image Text:Problem 9-2 Relevant Cash Flows [LO 1] Winnebagel Corporation currently sells 29,300 motor homes per year at $79,500 each and 8,300 luxury motor coaches per year at $121,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,300 of these campers per year at $25,500 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,900 units per year and reduce the sales of its motor coaches by 980 units per year. What is the amount to use as the annual sales figure when evaluating this project? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Net sales $ 81,063,000 X
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