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Bubbly Waters currently sells 3 5 0 Class A spas, 5 0 0 Class C spas, and 2 5 0 deluxe model spas each year.

Bubbly Waters currently sells 350 Class A spas, 500 Class C spas, and 250 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 425 units per year. However, if the new spa is added, Class A sales are expected to decline to 250 units while the Class C sales are expected to increase to 525. The sales of the deluxe model will not be affected. Class A spas sell for an average of $12,900 each. Class C spas are priced at $6,500 and the deluxe models sell for $17,500 each. The new mid-range spa will sell for $8,500. What annual sales figure should you use in your analysis?
$3,612,500
$4,740,000
$2,485,000
$1,127,500
$5,065,000

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