MC algo 10-3 Side Effects Bubbly Waters currently sells 440 Class A spas, 590 Class C spas, and 340 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 515 units per year. However, if the new spa is added, Class A sales are expected to decline to 295 units while the Class C sales are expected to increase to 615. The sales of the deluxe model will not be affected. Class A spas sell for an average of $14,700 each. Class C spas are priced at $7,400 and the deluxe models sell for $18,400 each. The new mid-range spa will sell for $9,400. What annual sales figure should you use in your analysis? Multiple Choice $6,787,500 $4,841,000 $1,946,500 $7,157,500 $2,894,500
MC algo 10-3 Side Effects
Bubbly Waters currently sells 440 Class A spas, 590 Class C spas, and 340 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 515 units per year. However, if the new spa is added, Class A sales are expected to decline to 295 units while the Class C sales are expected to increase to 615. The sales of the deluxe model will not be affected. Class A spas sell for an average of $14,700 each. Class C spas are priced at $7,400 and the deluxe models sell for $18,400 each. The new mid-range spa will sell for $9,400. What annual sales figure should you use in your analysis?
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$6,787,500
-
$4,841,000
-
$1,946,500
-
$7,157,500
-
$2,894,500
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