Question

winnebagel corporation currently sells 29,000 motor homes per year at $67,000 each, and 11,500 luxury motor coaches per year at $104,000 each. the company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,000 of these campers per year at $13,500 each. an independent consultant has determined that if winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,300 units per year and reduce the sales of its motor coaches by 1,000 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.)

Answer 1

The annual sales figure to consider when evaluating the project is $65,800,000, obtained by calculating the new sales of motor homes, motor coaches, and the sales of the new campers.

Step-by-step explanation:

To evaluate the project, we need to calculate the annual sales figure. Currently, Winnebagel sells 29,000 motor homes at $67,000 each and 11,500 luxury motor coaches at $104,000 each. If they introduce the new portable campers, it is expected to sold 24,000 campers per year at $13,500 each. Additionally, the consultant suggests that the introduction of the campers will increase motor home sales by 2,300 units and decrease motor coach sales by 1,000 units per year.

To calculate the annual sales figure, we need to consider the new sales of motor homes, motor coaches, and the sales of the new campers.

New motor home sales = 29,000 + 2,300 = 31,300

New motor coach sales = 11,500 - 1,000 = 10,500

Sales of new campers = 24,000

Total annual sales = New motor home sales + New motor coach sales + Sales of new campers

Total annual sales = 31,300 + 10,500 + 24,000 = $65,800,000