Annual sales figure when evaluating project

Assignment Help Financial Management
Reference no: EM131904112

Winnebagel Corp. currently sells 36,000 motor homes per year at $54,000 each, and 14,400 luxury motor coaches per year at $102,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 22,800 of these campers per year at $14,400 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 5,400 units per year, and reduce the sales of its motor coaches by 1,080 units per year. Required : What is the amount to use as the annual sales figure when evaluating this project?

Reference no: EM131904112

Questions Cloud

What statistical tests were used to analyze the data : Topic: Nursing Research. Data Analysis - What statistical tests were used to analyze the data (e.g., t-test, ANOVA, logistic regression)
Bonds make annual payments-what is the current bond price : The bonds make annual payments. If the YTM on these bonds is 6.65 percent, what is the current bond price?
What is the approximate value of a bonsai of the given kind : What do you understand about the timing involved in it's training and continued care? What is the approximate value of a bonsai of this kind?
Loan payoff using exact interest method : On September 14, Jennifer Rick went to Park Bank to borrow $1,000 at 6% interest. Calculate the loan for Jennifer under this assumption.
Annual sales figure when evaluating project : What is the amount to use as the annual sales figure when evaluating this project?
The company produces line of spare parts for appliances : The Acme Manufacturing Company is concerned about its warehouse needs and how they can be best met. The company produces a line of spare parts for appliances.
What ethics means from a human resource perspective : Describe what ethics means from a human resource perspective; what are some of the ways managers and employees can act in an unethical way?
Discuss the various types of influence processes : A discussion of the various types of influence processes and the factors that can affect them. The methodology used to identify and research the leaders select.
Share of common stock issued by doogle : Justin bought a share of common stock issued by DOOGLE for 100 dollars.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the company after-tax operating income

What is the company’s after-tax operating income? What is the company’s total capitalization? What is the company’s return on capital?

  Is this bond currently trading at a discount or premium

The bond has a yield to maturity of 6%. Is this bond currently trading at a “Discount” or a “Premium”?

  What role does risk play and how do you account for it

What role does risk play and how do you account for it in your analysis? What are the critical factors that led you to choose the option you chose?

  Treasury stock method of calculating diluted earnings share

Which statement would be most consistent with the Treasury Stock Method of calculating diluted earnings per share?

  Considering issuing bonds

Pybus, Inc. is considering issuing bonds that will mature in 23 years with an annual coupon rate of 9 percent.

  Chose is in the best interest of the shareholders

In your initial post, explain how the method you chose is in the best interest of the shareholders.

  What taxable gain must be reported on the sale

The Johnson Company bought a truck costing $24,000 two and a half years ago. The truck's estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yeste..

  Making the encumbrance accounting entry in fund accounting

What is the logic for making the encumbrance accounting entry in fund accounting?

  What would the best strategy for you to purchase the car

What would the best strategy for you to purchase the car (assume zero down payment for the car)?

  What price would you have to pay for it

A bond with a 7% coupon rate makes payments on January 15 and July 15 of each year (181-day coupon period). On January 30 (15 days have passed since the last semiannual coupon was paid), the ask price for the bond was reported as 100.0625. If you pur..

  Earnings before interest and taxes

There are two firms in the same business: Air Wolf and Red Wolf. Both are in the same risk class and each has an EBIT (Earnings Before Interest & Taxes) of $10 million. Air Wolf has no debt and Red Wolf has $4 million of debt. The cost of equity is 8..

  Nominal annual rate of interest convertible semiannually

What is the minimum yield that Tony could receive, expressed as a nominal annual rate of interest convertible semiannually?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd