What is the erosion cost, Jamie's Motor Home Sales

What is the erosion cost

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Reference no: EM132014475

1. According to the IFE, if British interest rates are lower than U.S. interest rates

a. the British inflation rate will decrease.

b. the British pound will appreciate against the dollar.

c. today's forward rate of the British pound will equal today's spot rate.

d. the British pound will depreciate against the dollar.

e. the British pound's value will remain constant.

2. Jamie's Motor Home Sales currently sells 1,000 Class A motor homes, 2,500 Class C motor homes, and 4,000 pop-up trailers each year. Jamie is considering adding a mid- range camper and expects that if she does so she can sell 1537 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 906 units while the Class C campers decline to 1914 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $115000 each. Class C homes are priced at $38176 and the pop-ups sell for $3641 each. The new mid-range camper will sell for $48986.

What is the erosion cost? (Round answer to 0 decimal places, round intermediate calculations to 5 decimal places)

Reference no: EM132014475

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