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Bubbly Waters currently sells 450 Class A spas, 600 Class C spas, and 350 deluxe model spas each year. The firm is considering adding a
Bubbly Waters currently sells 450 Class A spas, 600 Class C spas, and 350 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 525 units per year. However, if the new spa is added, Class A sales are expected to decline to 300 units while the Class C sales are expected to increase to 625. The sales of the deluxe model will not be affected. Class A spas sell for an average of $14,900 each. Class C spas are priced at $7500 and the deluxe models sell for $18,500 each. The new mid-range spa will sell for $9500. What annual sales figure should you use in your analysis? O $7,410,000 $2,940,000 $7,035,000 O$4,987,500 O $2,047,500
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