Annual sales figure when evaluating this project

Assignment Help Financial Management

Reference no: EM13728263

Travel America Coaches currently sells 15,000 motor homes per year at $94,000 each, and 1,500 luxury motor coaches per year at $159,000 each. The company wants to introduce a low-range camper to fill out its product line; it hopes to sell 6,000 of these campers per year at $14,500 each. An independent consultant has determined that if Travel Coaches introduces the new campers, it should boost the sales of its existing motor homes by 1,500 units per year, and reduce the sales of its luxury motor coaches by 450 units per year. What amount should be used as the annual sales figure when evaluating this project?

Reference no: EM13728263

Questions Cloud

Was stamp act beginning of the american revolution : In 1765, Parliament passed the infamous Stamp Act. How oppressive was the Stamp Act? How Radical were the responses to the Stamp Act? Was it the beginning of the American Revolution? Why or why not?

Considering two alternative methods of producing new product : A company is considering two alternative methods of producing a new product. The relevant data concerning the alternatives are presented below. Alternative I ?II Initial investment $64,000 $120,000 Annual receipts $50,000 $60,000 Annual disbursements..

Importance of public relation in business organization : Importance of public relation in business organization.

Explorers who has set out to discover traditional art : Imagine that you are one of these intrepid European explorers who has set out to discover and collect the traditional art forms created by the four cultures we have learned about this week.

Annual sales figure when evaluating this project : Travel America Coaches currently sells 15,000 motor homes per year at $94,000 each, and 1,500 luxury motor coaches per year at $159,000 each. The company wants to introduce a low-range camper to fill out its product line; it hopes to sell 6,000 of th..

Organize sales activities into a specific structure : Electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar - What are two advantages and two disadvantages of ..

What is the current bond price : App Store Co. issued 17-year bonds one year ago at a coupon rate of 6.3 percent. The bonds make semi-annual payments. If the YTM on these bonds is 5.5 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer..

Explain individual personalities and temperaments : Visit the CSU Online Library and locate a minimum of two recent articles on individual personalities and temperaments. Look for articles that discuss how personalities and temperaments affect management styles and/or organizational culture.

Transactions in a mutual fund : Abe made the following transactions in a mutual fund: The fund paid a dividend of $2 per share

User Account

All Pages