Question
AMH Inc. currently sells 844 Class A motor homes, 2,264 Class C motor homes, and 100,510 pop-up trailers yearly. AMH is considering adding a mid-range
AMH Inc. currently sells 844 Class A motor homes, 2,264 Class C motor homes, and 100,510 pop-up trailers yearly. AMH is considering adding a mid-range camper and expects to sell 1,017 if launched. However, if the new camper is added, AMH expects that its Class A sales will decline to 713 units while the Class C campers will decline to 1,790. The sales of pop-ups will not be affected. Class A motor homes sell each for an average of $109,336. Class C homes are priced at $42,734, and the pop-ups sell each for $4,123. The new mid-range camper will sell for $47,624. What is the cost of erosion?
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