Question

Winnebagel Corp. currently sells 28,854 motor homes per year at $66,650 each and 11,771 luxury motor...

Winnebagel Corp. currently sells 28,854 motor homes per year at $66,650 each and 11,771 luxury motor coaches per year at $104,109 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 13,436 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 2,400 units per year and reduce the sales of its motor coaches by 1,100 units per year. What is the amount to use as the annual sales figure when evaluating this project?

Topic: Incremental Cash Flows

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Answer #1

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