Use as annual sales when analyzing the proposed expansion

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Donegal Brothers is an exclusive retailer of men's clothes. The store is located in a prime professional office building and has average annual sales of $2.2 million. Currently, the owner is considering expanding into professional attire for women. Should the firm expand into women's clothing, he feels that their current sales to men will decline by $400,000. However, he believes that the store can sell an average of $750,000 of women's clothes a year. What should the owner use as annual sales when analyzing the proposed expansion?

Reference no: EM131326888

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