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(Solution document) Winnebagel plc currently sells 30,000 mobile caravans per year at 54,000 each, and 12,000 luxury stationary caravans per year at 91,000 each.


Winnebagel plc currently sells 30,000 mobile caravans per year at £54,000 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 £12,000 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 900 units per year.        Required:What is the amount to use as the annual sales figure when evaluating this project?

 

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