Amount to use as annual sales figure when evaluating project

Assignment Help Financial Management

Reference no: EM131059891

Winnebagel Corp. currently sells 26,400 motor homes per year at $39,600 each, and 10,560 luxury motor coaches per year at $74,800 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16,720 of these campers per year at $10,560 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,960 units per year, and reduce the sales of its motor coaches by 792 units per year.

Required: What is the amount to use as the annual sales figure when evaluating this project? Note: first calculate the sales of the new products, then add any incremental sales for the existing products and subtract any decrease in sales of the existing products.

Reference no: EM131059891

Questions Cloud

Kilocalories of heat does an expenditure : 1. A college student produces about 119 kcal of heat per hour on the average. What is the rate of energy production in joules? kJ/h 2. How many kilocalories of heat does an expenditure of 135 kJ produce? kcal

After which time it will have market value : Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.97 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a mar..

A chemical analysis of hellenistic black-glazed wares : Using principal components determine whether it is possible to discriminate between the attic and nonattic measurements using a PCA of the matallic oxides.

Difference between internal and external magneto timing : Write a research paper identifying the difference between internal and external magneto timing. The paper must be written as though you are providing information to a new mechanic on his or her first job assignment.

Amount to use as annual sales figure when evaluating project : Winnebagel Corp. currently sells 26,400 motor homes per year at $39,600 each, and 10,560 luxury motor coaches per year at $74,800 each. The company wants to introduce a new portable camper to fill out its product line; Required: What is the amount to..

Correlation matrix of the samples : The following data represent p = 22 physical and chemical measurements for n = 8 samples of crude oil (McCammon, 1966).

Problem regarding the sound intensity level : a) If you install special sound-reflecting windows that reduce the sound intensity level by 35.0 dB , by what factor have you reduced the sound intensity? b) If, instead, you reduce the intensity by half, what change (in dB ) do you make in the sou..

Initial investment in fixed assets when evaluating projects : Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 11 years ago for $8 million in anticipation of using it as a warehouse and distribution site, What is the pro..

Unbalanced forces are negligible : A car heading north collides with an identical car heading east at an intersection. Both cars have the same speed. If they lock together and travel at 28m/s at 46 degrees north of east just after the collision, how fast was the car initially trave..

User Account

All Pages