FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Problem 9-2 Relevant Cash Flows [LO 1]
Winnebagel Corp. currently sells 29,200 motor homes per year at $79,000 each and
8,200 luxury motor coaches per year at $121,000 each. The company wants to introduce
a new portable camper to fill out its product line; it hopes to sell 24,200 of these
campers per year at $25,000 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 3,800 units per year and reduce the sales of its motor coaches by 970 units
per year.
What is the amount to use as the annual sales figure when evaluating this project? (Do
not round intermediate calculations and round your answer to the nearest whole
number, e.g., 32.)
Net sales
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Transcribed Image Text:Problem 9-2 Relevant Cash Flows [LO 1] Winnebagel Corp. currently sells 29,200 motor homes per year at $79,000 each and 8,200 luxury motor coaches per year at $121,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,200 of these campers per year at $25,000 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 3,800 units per year and reduce the sales of its motor coaches by 970 units per year. What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net sales
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