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Winnebagel Corporation currently sells 31,000 motor homes per year at $69,000 each, and 12,500 luxury motor coaches per year at $106,000 each. The company wants
Winnebagel Corporation currently sells 31,000 motor homes per year at $69,000 each, and 12,500 luxury motor coaches per year at $106,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 26,000 of these campers per year at $14,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,500 units per year and reduce the sales of its motor coaches by 1,200 units per year. What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) A proposed new investment has projected sales of $515,000. Variable costs are 44 percent of sales, and fixed costs are $128,500; depreciation is $49,750. Prepare a pro forma income statement assuming a tax rate of 24 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.)
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