Man.2 Winnebagel Corporation currently sells 29,100 motor homes per year at $78,500 each and 8,100 luxury motor coaches per year at$120.500 each. The company wants to introduce a new portable camper to fill out its product line: It hopes to sell 24,100 of thesecampers per year at $24.500 each. An independent consultant has determined that if the company introduces the new campers, itshould boost the sales of its existing motor homes by 3.700 units per year and reduce the sales of its motor coaches by 960 units peryear. What is the amount to use as the annual sales figure when evaluating this project?Note: Do not round Intermediate calculations and round was

The amount that a business generates from selling goods and services to its customers is referred to…

Answered: Winnebagel Corporation currently sells…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Winnebagel Corp. currently sells 28,100 motor homes per year at $73,500 each and 7,100 luxury motor coaches per year at $115,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,100 of these campers per year at $19,500 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 2,700 units per year and reduce the sales of its motor coaches by 860 units per year. What is the amount to use as the annual sales figure when evaluating this project? Net sales: $______
Winnebagel Corp. currently sells 28,600 motor homes per year at $76,000 each and 7,600 luxury motor coaches per year at $118,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,600 of these campers per year at $22,000 each. An independent consultant has determined that if the company introduces the new campers, it could boost the sales of its existing motor homes by 3,200 units per year and reduce the sales of its motor coaches by 910 units per year. What are the annual sales for the new portable camper? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g. 1,234,567.) What are the annual increased sales for the motor home line? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g. 1,234,567.) What is annual loss in sales for the motor coach? (Do…
Master Craft Corp. currently sells 22,000 motor homes per year at $58,000 each, and 16,000 luxury motor coaches per year at $110,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 7,000 of these campers per year at $22,000 each. An independent consultant has determined that if Master Craft introduces the new campers, it should boost the sales of its existing motor homes by 2,500 units per year and reduce the sales of its motor coaches by 1,200 units per year. This project increases the annual fixed costs by $2,000,000. Here are the costs per unit: Variable costs 50,000 99,000 17,000 Motor home $ Motor coach $ Portable camper $ The project requires buying new specialized equipment that costs $15,000,000. The company must pay $200,000 more for installation costs. The total cost could be depreciated at 20% per year (class 8). Note that the 50% rule applies. The equipment will have a resale value of $10,000,000 in three years. The…
Winnebagel Corporation currently sells 21,000 motor homes per year at $59,000 each, and 7,500 luxury motor coaches per year at $96,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16,000 of these campers per year at $9,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,500 units per year and reduce the sales of its motor coaches by 1,200 units per year. What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Annual Slaes:
Winnebagel Corporation currently sells 20,000 motor homes per year at $103,000 each and 14,000 luxury motor coaches per year at $155,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 25,000 of these campers per year at $19,000 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 2,700 units per year and reduce the sales of its motor coaches by 1,300 units per year. What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Annual sales
Winn Corp. currently sells 9,820 motor homes per year at $45,500 each, and 3,680 luxury motor coaches per year at $89,700 each. The company wants to introduce a new portable camper to fill out its product line. It hopes to sell 4,000 of these campers per year at $14,750 each. An independent consultant has determined that if the new campers are introduced, sales of its existing motor homes will most likely increase by 250 units per year while the sales of its motor coaches will probably decline by 368 units per year. What is the amount that should be used as the annual sales figure when evaluating the portable camper project?
Winnebagel pic currently sells 30,000 mobile caravans per year at E52,000 each and 12,000 luxury stationary caravans per year at £91,000 each. The company wants to introduce a new caravanette to fill out its product line; it hopes to sell 19,000 of these caravanettes per year at £13,000 each. An independent consultant has determined that if Winnebagel introduces the new caravanettes, it should boost the sales of its existing luxury stationary caravans by 4,500 units per year, and reduce the sales of its mobile caravans by 850 units per year. What is the amount to use as the annua sales figure when evaluating this project a) © £409,500,000 b) £44.200,000 E247.000,000 None e) £612,300,000.
Bubbly Waters currently sells 440 Class A spas, 590 Class spas, and 340 deluxe modeſ spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 515 units per year. However, the new spa is added, Class A sales are expected to decline to 295 units while the Class C sales are expected to increase to 615. The sales of the deluxe model will not be affected. Class A spas sell for an average of $14,700 each. Class C spas are priced at $7,400 and the deluxe models sell for $18,400 each. The new mid-range spa sell for $9,400. What annual sales figure should you use in your analysis?
Solar Shade Inc. currently sells 40,000 basic solar shade devices per year at $60,000 each, and 16,800 custom-made solar shade devices per year at $150,000 each. The company wants to introduce a new portable solar shade to fill out its product line; it hopes to sell 26,000 of these per year at $16,000 each. An independent consultant has determined that if the company introduces the new solar shades, it should boost the sales of its basic solar shades by 6,000 units per year, and reduce the sales of custom-made solar shades by 1,200 units per year. What is the amount to use as the annual sales figure when evaluating this project?
Bubbly Waters currently sells 320 Class A spas, 470 Class C spas, and 220 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 395 units per year. However, if the new spa is added, Class A sales are expected to decline to 235 units while the Class C sales are expected to increase to 495. The sales of the deluxe model will not be affected. Class A spas sell for an average of $12,300 each. Class C spas are priced at $6,200 and the deluxe models sell for $17,200 each. The new mid-range spa will sell for $8,200. What annual sales figure should you use in your analysis?
DEF Corporation is considering a new product line. The company currently manufactures several lines of snow skiing apparel. The new products, insulated ski bikinis, are expected to generate sales of RM1 million per year for the next five years. They expect that during this five year period, they will lose about RM250,000 in sales on their existing lines of longer ski pants. The new line will require no additional equipment or space in the plant and can be produced in the same manner as the apparel products. The new project will, however, require that the company spend an additional RM80,000 per year on insurance in case customers sue for frostbite. Also, a new marketing director would be hired to oversee the line at RM45,000 per year in salary and benefits. Because of the different construction of the bikinis, an increase in inventory of 3,800 would be required initially. If the marginal tax rate is 30%, compute the incremental after tax cash flows for years 1-5. Select one: a.…
Phlight Restaurant is considering a delivery service. The firm expects that sales from the new service will be $150,000 per year. Phlight currently offers a sit-down service with annual sales of $100,000. While many of the delivery sales will be to new customers, Phlight estimates that 60% of their current sit-down customers will switch and use the delivery service. The level of incremental sales associated with introducing the delivery service is closest to: Select one: a. $90,000 b. $150,000 c. $60,000 d. $120,000

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