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What amount should be used as the annual sales

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Question - Company A currently sells 13,800 of product X per year at $87,900 each, and 1,100 of product Y per year at $139,900 each. The company wants to introduce product Z to fill out its product line; it hopes to sell 7,200 of product Z per year at $17,500 each. An independent consultant has determined that if the company introduces the product 2, it should boost the sales of its product X by 1,100 units per year, and reduce the sales of its product Y by 610 units per year. What amount should be used as the annual sales figure when evaluating this project?

Reference no: EM133185371

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