Annual sales figure when evaluating project

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Reference no: EM132009361

Winnebagel Corp. currently sells 30,000 motor homes per year at $73,000 each and 14,000 luxury motor coaches per year at $120,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 25,000 of these campers per year at $19,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,700 units per year and reduce the sales of its motor coaches by 1,300 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why?

Reference no: EM132009361

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