Question
(Relevant cash flows) Winnegagel Corp currently sells 19,000 motor homes per year at $80,000 each, and 16,000 luxury motor coaches per year at $100,000 each.
(Relevant cash flows) Winnegagel Corp currently sells 19,000 motor homes per year at $80,000 each, and 16,000 luxury motor coaches per year at $100,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 22,000 of these campers per year at $40,000 each. An independent consultant has determined that if Winnegagel introduces the new campers, it should boost the sales of its existing motor homes by 1,000 units per year, and reduce the sales of its motor coaches by 500 units per year. When evaluating this project, the amount to use as the annual sales figure is $ Answer million.
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