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Problem:

Winnebagel Corp. currently sells 29,500 motor homes per year at $80,500 each and 8,500 luxury motor coaches per year at $122,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,500 of these campers per year at $26,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,100 units per year and reduce the sales of its motor coaches by 1,000 units per year.

Required:

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

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149438

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