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What is the amount that should be used as the annual sales

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Question -  The firm currently sells 9,000 units of gas-motors per year at $5,000 each, and 3,000 units of electric-motors per year at $8,000 each. The company wants to introduce a new portable motor to fill out its product line. It hopes to sell 4,000 of these motors per year at $10,000 each. An independent consultant has determined that if the new campers are introduced, sales of its existing gas-motors will most likely increase by 200 units per year while the sales of its electric motors will probably decline by 300 units per year. What is the amount that should be used as the annual sales figure when evaluating the project of the new portable motor? Assume prices for existing motors stay the same.

Reference no: EM133094956

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