Shoe-tek, Inc. is a foremost manufacturer of running shoes. With baby boomers getting older, they found that there is a potential market in shoes specifically developed for walking rather than running. Market research recommends that walking shoe market will be $100 million and Shoe-tek could capture 20 percent of this market as its strong brand. Though, it is evaluated that 10 percent of Shoe-tek's current sales of running shoes are already being used by baby boomers for walking. If Shoe-tek introduces walking shoe, half of these consumers would switch ferom Shoe-tek's running shoe to walking shoes. Shoe-tek has already spent $10 million on R&D for its running shoes and could leverage this and manufacture completely new walking shoe for extra $1 million in R&D. Shoe-tek would also require to create extension to their warehouse to accommodate extra materials and inventory. This extension would cost $1 million. If annual revenues for Shoe-tek total $80 million, determine the amount to use as annual sales figure when estiamting this project? describe why?