Problemwinnebagel corp currently sells 19800 motor homes, Ask an Expert

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Problem:

Winnebagel Corp. currently sells 19,800 motor homes per year at $29,700 each, and 7,920 luxury motor coaches per year at $56,100 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 12,540 of these campers per year at $7,920 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,970 units per year, and reduce the sales of its motor coaches by 594 units per year.

Required:

Question: What is the amount to use as the annual sales figure when evaluating this project?

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166180

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