Question
Your company currently produces and sells steel shaft golf clubs. The board of directors wants you to consider the introduction of a new line of
Your company currently produces and sells steel shaft golf clubs. The board of directors wants you to consider the introduction of a new line of titanium bubble woods with graphite shafts. The company estimates that it could sell 50,000 titanium golf clubs at a cost of $300 each. Currently, the company sells 1,000,000 steel shaft clubs at a cost of $46 each. However, you feel that the introduction of the new golf clubs would cause the sales of existing clubs to drop by 300,000. What is the amount of sales that should be used when evaluating the addition of the titanium golf club?
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