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FINANCE 301 Assignment 6
1) Winnebagel Corp. currently sells 19,200 motor homes per year at $28,800
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each, and 7,680 luxury motor coaches per year at $54,400 each. Thecompany wants to introduce a new portable camper to fill out its productline; it hopes to sell 13,440 of these campers per year at $7,680 each. Anindependent consultant has determined that if Winnebagel introduces thenew campers, it should boost the sales of its existing motor homes by 3,200units per year, and reduce the sales of its motor coaches by 832 units peryear. The amount to use as the annual sales figure when evaluating thisproject is $____________.Summer Tyme, Inc., is considering a new 5-year expansion project thatrequires an initial fixed asset investment of $5.778 million. The fixed assetwill be depreciated straight-line to zero over its 5-year tax life, after whichtime it will be worthless. The project is estimated to generate $5,136,000 inannual sales, with costs of

