Introduce new portable camper to fill out its product line

Assignment Help Financial Management
Reference no: EM131320884

Winnebagel Corp. currently sells 29,700 motor homes per year at $81,500 each and 8,700 luxury motor coaches per year at $123,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,700 of these campers per year at $27,500 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 4,300 units per year and reduce the sales of its motor coaches by 1,020 units per year. What is the amount to use as the annual sales figure when evaluating this project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net sales =$

Reference no: EM131320884

Questions Cloud

Identifying and summarizing two closing methods : Write a paper (1) reporting types of closing methods and (2) identifying and summarizing two closing methods pertaining to the following situation.
Differences between hobbes and machiavellis view of human : Discuss the similarities and differences between Hobbes' and Machiavelli's view of human nature. Take into account the historical/political environment of both authors at the time of their writing
Find the critical value of t in a table of critical values : What two pieces of information must be known in order to find the critical value of t in a table of critical values?
Would you advise a friend to invest in this company : Prepare a well-written titled "Would You Advise a Friend to Invest in This Company?" based upon your research and analysis of this company's financial information. Identify 3-5 significant points that justify
Introduce new portable camper to fill out its product line : Winnebagel Corp. currently sells 29,700 motor homes per year at $81,500 each and 8,700 luxury motor coaches per year at $123,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,700 of these..
Write a program that prompts the salesperson : Write a program that prompts the salesperson for the name of the customer and the price of the textbooks sold to that customer.
Suppose electricom marketing manager : Suppose Electricom's marketing manager learned that actual sales of his firm's electric widgets to NAICS industry #335312 amounted to about 20 percent of its national market potential for that industry
Is definition of conductivity limited to thermal equilibrium : Describe the conditions at which the conductivity is an equilibrium parameter and hence a fundamental property of a solid.
What is the biblical basis for your philosophy : How can you use, teach, and equip others to participate in multicultural ministry? Use at least 2 relevant academic references to support your ideas. What is the biblical basis for your philosophy

Reviews

Write a Review

Financial Management Questions & Answers

  Sales grow before any new fixed assets are needed

Alter Bridge Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $500,000. How fast can sales grow before any new fixed assets are needed?

  Equity investors-long-term and short-term creditors

Financial ratio analysis is conducted by four groups of analysts: managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?

  What is the real return on long-term corporate bonds

Consider the following information on different asset classes from 1926 through 2011. What is the real return on long-term government bonds? What is the real return on long-term corporate bonds?

  Change in dividend than with actual amount of dividend

Dividends tend to fluctuate in direct relation to changes in annual earnings. Managers are less concerned with the change in the dividend than with the actual amount of the dividend. Managers tend to avoid smooth dividends as they don't signal the fi..

  What will the monthly depreciation be for the equipment

Apps R Us made a purchase of $20,000 worth of computer equipment. The equipment is expected to have a useful life of three years, and be worth $2,000 at the end of its useful life. What will the monthly depreciation be for the equipment? When they pu..

  What is the relationship between the mpc and the mps

What is the relationship between the MPC and the MPS? If the MPC rises, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?

  Concrete construction has a return on assets

Concrete construction has a return on assets (ROA) of 5 percent, a 2 percent profit margin, and a return on equity (ROE) OF 11 percent. What is its equity multipler?

  What present value or price should someone pay

An annuity due makes 9 annual payments of $425 each. What present value or price should someone pay for this stream at time point zero if they seek to earn an annual return of 5.5%?

  An analysis of the revised project

Evaluate the project in light of this new information

  Market value and the costs of specific sources of capital

The following data regarding the market value and the costs of specific sources of capital. Source of Capital After tax cost Long term debt 8% Common stock equity 19% Market price per share of your common stock is $50 Market value of your long-term d..

  About the trend analysis

Using a 3-year trend analysis, how has Marriott’s position changed in the areas of: a) Debt Management (i.e., LT debt ratio, TIE) and b) Profitability (i.e., ROE, ROA)? Be sure to interpret your ratio analysis and explain the reasons for your conclus..

  Cash flow in order to understand the value of business

Which of the following is NOT a reason to monitor free cash flow in order to understand the value of a business? Each year, shareholders receive a dividend equal to the firm's net earnings divided by the number of shares of common stock. Which of the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd