Question
LoseaBego, Inc. sell motor homes. Its current annual Sales are 20,000 regular units at $97,000 and 14,000 luxury coaches at $145,000 each. The company is
LoseaBego, Inc. sell motor homes. Its current annual Sales are 20,000 regular units at $97,000 and 14,000 luxury coaches at $145,000 each. The company is considering introducing a new smaller camper of which it projects to sell 30,000 units at $21,000 each. Market research indicates that introducing the new unit will increase sale of its regular units by 2,700 units annually and reduce sales of the luxury coaches by 1,300 units per year. When analyzing the viability of introducing the new product, what projected annual Sales number should the company use?
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