Bubbly Waters currently sells 530 Class A spas, 680 Class C spas, and 430 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 605 units per year. However, if the new spa is added, Class A sales are expected to decline to 340 units while the Class C sales are expected to increase to 705. The sales of the deluxe model will not be affected. Class A spas sell for an average of $16,500 each. Class C spas are priced at $8,300 and the deluxe models sell for $19,300 each. The new mid-range spa will sell for $10,300. What annual sales figure should you use in your analysis?

Multiple Choice

• $6,231,500

• $9,159,000

• $3,304,000

• $9,574,000

• $2,927,500