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Bubbly Waters currently sells 500 Class A spas, 650 Class C spas, and 400 deluxe model spas each year. The firm is considering adding a
Bubbly Waters currently sells 500 Class A spas, 650 Class C spas, and 400 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 575 units per year. However, if the new spa is added, Class A sales are expected to decline to 325 units while the Class C sales are expected to increase to 675. The sales of the deluxe model will not be affected. Class A spas sell for an average of $15,900 each. Class C spas are priced at $8,000 and the deluxe models sell for $19,000 each. The new mid-range spa will sell for $10,000. What annual sales figure should you use in your
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