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Speedy Racer Corp: What is the amount of the annual sales figure when evaluating this project?

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Speedy Racer Corp. currently sells 18,000 motor homes per year at $40,000 each, and 6,000 luxury motor coaches per year at $55,000 each. The company wants to introduce a new portable camper to fill out its project line; it hopes to sell 12,000 of these campers per year at $10,000 each. An independent consultant has determined that if Speedy Racer introduces the new campers, it should boost sales of its existing motor homes by 5,000 units per year, and reduce the sales of its motor coaches by 2,000 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why?

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Solution Summary

The solution includes a narrative section as well as the tables and calculations for the amount of annual sales needed in an attached Excel file.

Solution Preview

See attached Excel file.

We have evaluated the company's condition into two situations.
First is without project case,
Second is after project case (in case of acceptation)

I reflect these two eras on the attached excel file, you would figure ...

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