Answer :
The annual sales figure when evaluating this project will be $1,967,013,712, which is calculated as follows:Given,Winnebagel Corp. currently sells 36,852 motor homes per year at $41,232 each36,852 × $41,232 = $1,519,742,464and,17,574 luxury motor coaches per year at $91,586 each17,574 × $91,586 = $1,608,196,764
The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 20,834 of these campers per year at $22,969 each20,834 × $22,969 = $478,074,046Total sales revenue before introducing a new camper =$1,519,742,464 + $1,608,196,764 = $3,127,939,228 Now, The sales of existing motorhomes after introducing new campers = 36,852 + 2,439 = 39,291.
The reduction in sales of motor coaches after introducing new campers = 17,574 - 1,943 = 15,631.The total revenue generated after the introduction of the new portable camper will be,$1,519,742,464 + $1,608,196,764 + $478,074,046= $3,606,013,274Now, we will calculate the revenue generated after the introduction of the new portable camper considering the sales boost in existing motorhomes and the reduction in sales of luxury motor coaches. Total revenue after introducing a new camper and considering the sales boost and reduction of existing motor homes and coaches would be $1,967,013,712 (approx). Therefore, the amount to use as the annual sales figure when evaluating this project is $1,967,013,712. The amount to use as the annual sales figure when evaluating this project is $1,967,013,712.
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