Question

Winnebagel Corp. currently sells 27,600 motor homes per year at $41,400 each, and 11,040 luxury motor coaches per year at $78,200 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 17,480 of these campers per year at $11,040 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4,140 units per year, and reduce the sales of its motor coaches by 828 units per year.

Answer 1