Bubbly Waters currently sells 480 Class A spas, 630 Class C spas, and 380 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 555 units per year. However, if the new spa is added, Class A sales are expected to decline to 315 units while the Class C sales are expected to increase to 655. The sales of the deluxe model will not be affected. Class A spas sell for an average of $15,500 each. Class C spas are priced at $7,800 and the deluxe models sell for $18,800 each. The new mid-range spa will sell for $9,800. What annual sales figure should you use in your analysis?

Multiple Choice

• $7,801,500

• $2,362,500

• $8,191,500

• $5,439,000

• $3,076,500