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Bubbly Waters currently sells 340 Class A spas, 490 Class C spas, and 240 deluxe model spas each year. The firm is considering adding a
Bubbly Waters currently sells 340 Class A spas, 490 Class C spas, and 240 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 415 units per year. However if the new spa is added, Class A sales are expected to decline to 245 units while the Class C sales are expected to increase to 515. The sales of the deluxe model will not be affected. Class A spas sell for an average of $12,700 each. Class C spes are priced at $6,400 and the deluxe models sell for $17,400 eech. The new mid-range spe will sell for $8,400. What annual sales figure should you use in your analysis? $3,486,000 $1,046,500 O $4,852,500 O $2439.500 $4.532.500
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