Question
AMH Inc. currently sells 1,083 Class A motor homes, 2,174 Class C motor homes, and 133,004 pop-up trailers yearly. AMH is considering adding a mid-range
AMH Inc. currently sells 1,083 Class A motor homes, 2,174 Class C motor homes, and 133,004 pop-up trailers yearly. AMH is considering adding a mid-range camper and expects to sell 1,855 if launched. However, if the new camper is added, AMH expects that its Class A sales will decline to 628 units while the Class C campers will decline to 1,825. The sales of pop-ups will not be affected. Class A motor homes sell each for an average of $110,815. Class C homes are priced at $28,844, and the pop-ups sell each for $5,711. The new mid-range camper will sell for $46,517. What is the cost of erosion?
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