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Calculation of Relevant Cash flows under Decision Making.

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Relevant Cash Flows

Winnebagel Corp. currently sells 40,800 motor homes per year at $61,200 each, and 16,320 luxury motor coaches per year at $115,600 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 28,560 of these campers per year at 16,320 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 6,800 units per year, and reduce the sales of its motor coaches by 1,768 units per year. The amount to use as the annual sales figure when evaluating this project is $............

 

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