Question
Cool Comfort currently sells 352 Class A spas, 436 Class C spas, and 244 Deluxe model spas each year. The firm is considering adding a
Cool Comfort currently sells 352 Class A spas, 436 Class C spas, and 244 Deluxe model spas each year. The firm is considering adding a mid-class spa and expects that, if it does, it can sell 520 of them. However, if the new spa is added, Class A sales are expected to decline to 222 units while the Class C sales are expected to decline to 300 units. The sales of the deluxe model will not be affected. Class A spas sell for an average of $13,364 each. Class C spas are priced at $7,355 and the deluxe model sells for $17,448 each. The new mid-range spa will sell for $7,128. What is the value that should be assigned to the revenues for each year of this project? (Round answer to zero decimals. Do not round intermediate calculations)
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