Ask Question
BusinessBusiness
2 August, 00:15

Winnebagel Corp. currently sells motor homes at $73,000 each. The company wants to introduce a new portable camper to fill out its product line. It hopes to sell 25,000 of these campers per year at $19,000 each. The marketing department of the firm has forecasted that the sale of its motor homes will be reduced by 1500 when the new portable camper will be introduced. However, 500 out of such loss in motor homes (1500) will move to the firm's competitor no matter whether the new portable camper is introduced or not. What is the erosion effect on the sale of motor homes by introducing the new portable camper (in millions) ? Group of answer choices A. 365.5 B. 109.5 C. 73 D. 36.5

+5
Answers (1)
  1. 2 August, 00:19
    0
    Answer: C. 73

    Explanation:

    It is stated that 1,500 less motor homes will be sold once Winnebagel Corp. introduces it's new Portable Camper.

    However it also states that 500 out of this 1,500 will be lost regardless of if the Portable Camper is introduced or not.

    So that means that the actual erosion effect on the sale of motor homes is,

    = 1,500 - 500

    = 1,000 mobile homes.

    Since each home is sold for $73,000 then the Erosion effect will be,

    = 73,000 * 1,000

    = $73,000,000

    $73 million is the erosion effect on the sale of motor homes by introducing the new portable camper so Option C is correct.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Winnebagel Corp. currently sells motor homes at $73,000 each. The company wants to introduce a new portable camper to fill out its product ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Administrators at a university were interested in estimating the percentage of students who are on a vegetarian diet. The university's student body has about 40, 000 members.
Answers (1)
Where did the Havaianas originate?
Answers (1)
What is rust scientifly known as?
Answers (1)
Hahn Corp. has three employees. Each earns $600 per week for a five-day workweek ending on Friday. This month the last day of the month falls on a Wednesday. The company should make an adjusting entry: (Multiple Choice) A.
Answers (1)
Lucy works in an office that has nonterritorial workspaces. this is new to her, and she would like to display good open office etiquette. what should she do?
Answers (1)
New Questions in Business
Watching consumers' actions during the postpurchase evaluation step of the consumer decision-making process led to the development of Chipotle's best-selling product, the Multiple Choice a. fried burrito. b. soft taco. c. taco salad. d.
Answers (1)
On June 1, 2021, Andres Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021.
Answers (1)
What are some effects of multinational businesses?
Answers (1)
When should you use capitalization? A. For all nouns in a sentence B. At the end of a sentence and in the footer C. At the beginning of a sentence and for proper nouns D. For verbs and nouns in a sentence
Answers (2)
A child in a child passenger restraint system (car seat) should.
Answers (1)
Home » Business » Winnebagel Corp. currently sells motor homes at $73,000 each. The company wants to introduce a new portable camper to fill out its product line. It hopes to sell 25,000 of these campers per year at $19,000 each.
Sign Up Forgot Password?