Winnebagel Corp. currently sells 39,089 motor homes per year at $41,847 each, and 10,363 luxury motor coaches per year at $118,784 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16,138 of these campers per year at $11,428 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,091 units per year, and reduce the sales of its motor coaches by 1,489 units per year. What is the amount to use as the annual sales figure when evaluating this project?
Winnebagel Corp. currently sells 39,089 motor homes per year at $41,847 each, and 10,363 luxury motor coaches per year at $118,784 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16,138 of these campers per year at $11,428 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,091 units per year, and reduce the sales of its motor coaches by 1,489 units per year. What is the amount to use as the annual sales figure when evaluating this project?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Winnebagel Corp. currently sells 39,089 motor homes per year at $41,847 each, and 10,363 luxury motor coaches per year at $118,784 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16,138 of these campers per year at $11,428 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,091 units per year, and reduce the sales of its motor coaches by 1,489 units per year. What is the amount to use as the annual sales figure when evaluating this project?
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