Duckmaloi Campers currently sells 31 000 caravans per year at $84 000 each, and 9000 luxury...

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Duckmaloi Campers currently sells 31 000 caravans per year at $84 000 each, and 9000 luxury caravans per year at $134 000 each. The company wants to introduce a new portable camper to full out its product line; it hopes to sell 27 000 of these campers per year at $23 500 each. An independent consultant has determined that if Duckmaloi introduces the new campers, it should boost the sales of its existing caravans by 3000 units per year, and reduce the sales of its luxury caravans by 800 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why? New sales? Cannibalized (lost) sales? Duckmaloi Campers currently sells 31 000 caravans per year at $84 000 each, and 9000 luxury caravans per year at $134 000 each. The company wants to introduce a new portable camper to full out its product line; it hopes to sell 27 000 of these campers per year at $23 500 each. An independent consultant has determined that if Duckmaloi introduces the new campers, it should boost the sales of its existing caravans by 3000 units per year, and reduce the sales of its luxury caravans by 800 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why? New sales? Cannibalized (lost) sales?

Answer rating: 100% (QA)

SOLUTION Following amount of sales figure to be used in evalua... View the full answer