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02.08.2022 - 06:27

Green Woods sells specialty equipment for mountain climbers. Its sales for last year included $387,000 of tents and $718,000 of climbing gear. For the next year management decided to sell sleeping bag

Question:

Green Woods sells specialty equipment for mountain climbers. Its sales for last year included $387,000 of tents and $718,000 of climbing gear. For the next year management decided to sell sleeping bags. As a result of this change sales projections for the next year are $411,000 of tents $806,000 of climbing gear and $128,000 of sleeping bags. How much of next year’s sales are derived from the side effects of adding the new product to its sale offerings?

A. $112,000

B. 0

C. 128,000

D. 240,000

E. 251,000

Answers (1)

Loyce April 13, 2023 в 14:43

The sales projections for tents and climbing gear for the next year are higher than the actual sales in the previous year. Therefore, those increases cannot be attributed to the addition of sleeping bags to the product line. The only new sales that can be attributed to the addition of sleeping bags are the $128,000 in projected sales. Therefore, the answer is C. $128,000.

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