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Bubbly Waters currently sells 350 Class A spas. 500 Class C spas, and 250 deluxe model spas each year. The firm is considering adding

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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?

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