What is annual loss in sales for the motor coach

Assignment Help Financial Management
Reference no: EM131047490

Winnebagel Corp. currently sells 28,500 motor homes per year at $75,500 each and 7,500 luxury motor coaches per year at $117,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,500 of these campers per year at $21,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,100 units per year and reduce the sales of its motor coaches by 900 units per year.

Required: What are the annual sales for the new portable camper? Camper sales $

What are the annual increased sales for the motor home line? Motor home sales $

What is annual loss in sales for the motor coach? (Enter your answer as a positive value.) Motor coach sales loss $

What is the amount to use as the annual sales figure when evaluating this project? Net sales $

Reference no: EM131047490

Questions Cloud

Determine the total standard cost per wheel : Dixon Manufacturing Company, which makes aluminum alloy wheels for automobiles, recently introduced a new luxury wheel that fits small sports cars. The company developed the following standards for its new product. Compute the standard cost per wheel..
What will be the cost of equity after the repurchase : An unlevered firm has expected earnings of $33,062.50 and a market value of equity of $287,500. The firm is planning to issue $50,000 of debt at 7 percent interest and use the proceeds to repurchase shares at their current market value. Ignore taxes...
What is the firm-specific variance of your portfolio : Suppose that the index model for stocks A and B is estimated from excess returns with the following results: What is the standard deviation of What is the firm-specific variance of your portfolio?
Identical firms except for their capital structures : Delta Mills and Franklin Mill are identical firms except for their capital structures. Delta is an unlevered firm with $750,000 in stock. Franklin is a levered firm with $375,000 of stock and an interest rate on debt of 8 percent. Both Delta and Fran..
What is annual loss in sales for the motor coach : Winnebagel Corp. currently sells 28,500 motor homes per year at $75,500 each and 7,500 luxury motor coaches per year at $117,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,500 of these..
Index model for stock-standard deviation of portfolio : Suppose that the index model for stocks A and B is estimated from excess returns with the following results: What is the standard deviation of the portfolio?
What is the net present value of project : What is the net present value of a project with a $39,500 initial investment and expected net cash flows of $18,800, $15,400, and $25,700 in each of the next three years, assuming an appropriate discount rate of 9.7 percent?
One-year inflation rate for year three implied by data : The real risk-free rate is 1.53%. Inflation is expected to be 2.46% this year and 3.77% next year. The maturity risk premium is estimated to be equal to 0.11%(t-1), where t equals the maturity of a bond in years. All treasuries are assumed to have no..
Purchase of a new machine for the production of latex : Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,066,000 and will last for six years. Variable costs are 40 percent of sales, and fixed costs are $210,000 per year. Calculate the EAC for..

Reviews

Write a Review

Financial Management Questions & Answers

  Assuming no other deposits are made to this account

You need to have $75,000 to purchase your dream car. You currently have $20,000. You can invest the money in an account that pays 5.5% interest each year. How long will it take you to have the money to purchase the car (assuming no other deposits are..

  What amount should be used as the initial cash flow

Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $264,000. At the time of purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. What..

  Four-year project to improve its production efficiency

Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $533711 is estimated to result in some amount of annual pretax cost savings. The press will have an aftertax salvage valu..

  Dividends are growing at a constant rate

The last observed dividend for Company Z before today was $2.15. Dividends are growing at a constant rate of 8.5% annually. If the required rate of return on the stock is 12.5%, what will be the total expected dollar capital gain per share on the sto..

  Machine models are being considered for ongoing operation

Three alternative machine models are being considered for an ongoing operation. The three alternatives will be used in the production of the same product. Therefore, the selection among the three will be based on total costs.

  What is the firms cost of equity

Chelsea fashions is expected to pay an annual dividend of $0.80 a share next year. the market price of the stock is $22.40 and the growth rate is 5%. what is the firm's cost of equity?

  Portfolio consisting of risk free asset and market portfolio

Assume the market has a Treynor Index of 4.00%. What is the treynor index of your portfolio consisting of the risk free asset and the market portfolio weight on the market is 17% (and the balance is in the risk free security)? the Treynor Index of yo..

  Financing costs and working capital requirements

Enterprise Free Cash Flows should include: Capital expenditures, Financing costs,Working capital requirements

  What are arithmetic and geometric returns for stock

A stock has had returns of −26 percent, 6 percent, 34 percent, −5 percent, 28 percent, and 19 percent over the last six years. Required: What are the arithmetic and geometric returns for the stock?

  Prepaid insurance account after the above adjusting entry

Assume Idaho Company recorded the following adjusting journal entry at year-end: If the beginning balance in prepaid insurance was $200 and $8,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance ..

  Compute the bonds expected rate of return

National Steel 15-year, $1000 par value bonds pay 5.5 percent interest annually. The market price of the bonds is &1,085, and your required rate of return is 7 percent. a. Compute the bonds expected rate of return. b. Determine the value of the bond ..

  Explain how a obhc differs from a mbhc

Explain how a OBHC differs from a MBHC. How does each of these differ from a financial services holding company?

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