Annual sales figure when evaluating project


Problem:

Winnebagel Corp. currently sells 15,000 motor homes per year at $22,500 each, and 6,000 luxury motor coaches per year at $42,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 9,500 of these campers per year at $6,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,250 units per year, and reduce the sales of its motor coaches by 450 units per year.

Requirement:

Question: What is the amount to use as the annual sales figure when evaluating this project?

Note: Please show how to work it out.

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Accounting Basics: Annual sales figure when evaluating project
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