Winnebagel Corp. currently sells 21,600 motor homes per year at $32,400 each, and 8,640 luxury motor coaches per year at $61,200 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 13,680 of these campers per year at $8,640 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,240 units per year, and reduce the sales of its motor coaches by 648 units per year.
Required :
What is the amount to use as the annual sales figure when evaluating this project?
Note: first calculate the sales of the new products, then add any incremental sales for the existing products and subtract any decrease in sales of the existing products.
$183,513,600
$174,337,920
$192,689,280
$262,828,800
$118,195,200