Evaluating the addition of the lower-priced shirts

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Fairway Creations sells hand-sewn, customized golf shirts. They currently sell 11,000 shirts annually at an average price of $105 each. Fairway is considering adding a lower-priced line of shirts with simpler styling that would sell for $69 each. They estimate they can sell 8,000 of the lower-priced shirts but will sell 3,000 fewer of the higher-priced shirts by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced shirts?

Reference no: EM131597083

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