Stevenator Motor works Corp, currently sells 10,000 compact cars per year at $50,000 each, and 25000 luxury sedans per year at $90,000 each. The company wants to introduce a new mid-sized sedan to fill out its product line: they hope to sell 12,000 of the cars per year at $15,000 each. An independent consultant has determined that if Stevinator introduces the new cars, it will likely boost the sales of its existing compacts by 2,000 units per4 year, while reducing the unit sales of its existing compacts by 2,000 units per year, while reducing the unit sales of its luxury sedans by 1,000 units per year, What is the annual cash flow amount to use as the sales figure when evaluating this project? Why?

Answer rating: 100% (QA)

BEFORE INTRODUCTION OF NEW MID SIZED SEDAN A B CAB Quantity Price Amou... View the full answer