ZuoTi.Pro
Question

Currently, GH Co. sells 42,600 handbags annually at an average price of $149 each. It is...

Currently, GH Co. sells 42,600 handbags annually at an average price of $149 each. It is considering adding a lower-priced line of handbags that sell for $79 each. The firm estimates it can sell 21,000 of the lower-priced handbags but expects to sell 7,200 less of the higher-priced handbags by doing so. What is the amount of annual sales that should be used when evaluating the addition of the lower priced handbags?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

amount of annual sales = 21,000 * 79 - 7200 * 149

amount of annual sales = 586,200

0 0
Add a comment
Know the answer?
Add Answer to:
Currently, GH Co. sells 42,600 handbags annually at an average price of $149 each. It is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A company is considering adding a lower-priced line of products. It estimates it can sell 7,000...

    A company is considering adding a lower-priced line of products. It estimates it can sell 7,000 of these products each year for $59 per unit with unit costs of $39 to make. By introducing this new product, this company think that it will sell 3,000 fewer of its higher-priced product that sells 18,000 annually at an average price of $89 with variable cost of $49 each. With a 25% tax rate, what is the incremental amount of annual Operating Cash...

  • 4,Bubbly Waters currently sells 370 Class A spas, 520 Class C spas, and 270 deluxe model...

    4,Bubbly Waters currently sells 370 Class A spas, 520 Class C spas, and 270 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 445 units per year. However, if the new spa is added, Class A sales are expected to decline to 260 units while the Class C sales are expected to increase to 545. The sales of the deluxe model will not be affected. Class A...

  • Bubbly Waters currently sells 320 Class A spas, 470 Class C spas, and 220 deluxe model...

    Bubbly Waters currently sells 320 Class A spas, 470 Class C spas, and 220 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 395 units per year. However, if the new spa is added, Class A sales are expected to decline to 235 units while the Class C sales are expected to increase to 495. The sales of the deluxe model will not be affected. Class A...

  • The Stop Shoppe currently sells blue jeans and T-shirts. Management is considering adding fleece tops to...

    The Stop Shoppe currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $26 each with expected sales of 6,700 tops annually. By adding the fleece tops, management feels the firm will sell an additional 960 pairs of jeans at $13 a pair and 470 fewer T-shirts at $19 each. The variable cost per unit is $8 on the jeans, $12 on the T-shirts,...

  • Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its...

    Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler-weather option. The tops would sell for $51 each with expected sales of 4,400 tops annually. By adding the fleece tops, management feels the firm will sell an additional 295 pairs of jeans at $63 a pair and 430 fewer T-shirts at $24 each. The variable cost per unit is $34 on the jeans, $14 on the T-shirts, and $29...

  • Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its...

    Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $50 each with expected sales of 4,450 tops annually. By adding the fleece tops, management feels the firm will sell an additional 300 pairs of jeans at $62 a pair and 435 fewer T-shirts at $23 each. The variable cost per unit is $33 on the jeans, $13 on the T-shirts, and...

  • Burke's Comer currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its...

    Burke's Comer currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $49 each with expected sales of 4,500 tops annually. By adding the fleece tops, management feels the firm will sell an additional 305 pairs of jeans at $61 a pair and 440 fewer T-shirts at $22 each. The variable cost per unit is $32 on the jeans, $12 on the T-shirts, and...

  • Mama's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its...

    Mama's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $49 each with expected sales of 3,600 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $59 a pair and 350 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $9 on the T-shirts, and...

  • Winnebagel Corp. currently sells 21,000 motor homes per year at $59,000 each, and 7,500 luxury motor...

    Winnebagel Corp. currently sells 21,000 motor homes per year at $59,000 each, and 7,500 luxury motor coaches per year at $96,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16,000 of these campers per year at $9,500 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,500 units per year and reduce the...

  • Assume that an MNC operating in China currently sells 1,500 units of a product each month...

    Assume that an MNC operating in China currently sells 1,500 units of a product each month at a price in yuans (CNY) of 4,000 and has a profit margin of 20 percent. Currently the customers take cash delivery. The firm is considering a new pricing structure that requires customers to choose between cash discounts and credit. The firm wants to offer a price of CNY 4,100 with a “ 3/ 15 net 60” deal. The firm estimates that its sales...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT