Winnebagel Corp. currently sells 32,000 motor homes per year at $70,000 each, and 13,000 luxury motor coaches per year at $107,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 27,000 of these campers per year at $15,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 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?
Winnebagel Corp. currently sells 32,000 motor homes per year at $70,000 each, and 13,000 luxury motor coaches per year at $107,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 27,000 of these campers per year at $15,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 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?
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Winnebagel Corp. currently sells 32,000 motor homes
per year at $70,000 each, and 13,000 luxury motor
coaches per year at $107,000 each. The company
wants to introduce a new portable camper to fill out its
product line; it hopes to sell 27,000 of these campers
per year at $15,000 each. An independent consultant
has determined that if Winnebagel introduces the new
campers, it should boost the sales of its existing motor
homes by 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?
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