Winnebagel Corp. currently sells 28,000 motor homes per year at $84,000 each and 7,000 luxury motor coaches

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Winnebagel Corp. currently sells 28,000 motor homes per year at $84,000 each and 7,000 luxury motor coaches per year at $135,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 29,000 of these campers per year at $24,700 each. An independent consultant has determined that if the company introduces the new campers, it could boost the sales of its existing motor homes by 2,500 units per year and reduce the sales of its motor coaches by 750 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why?

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Essentials of Corporate Finance

ISBN: 978-1260013955

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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