Question
Winnebagel Corp. currently sells 39,889 motor homes per year at $68,465 each and 10,774 luxury motor coaches per year at $103,668 each. The company wants
Winnebagel Corp. currently sells 39,889 motor homes per year at $68,465 each and 10,774 luxury motor coaches per year at $103,668 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 10,801 of these campers per year at $12,176 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,400 units per year and reduce the sales of its motor coaches by 1,100 units per year. What is the amount to use as the annual sales figure when evaluating this project?
Topic: Incremental Cash Flows
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