Outdoors Essentials sells specialty equipment for mountain climbers.Its sales for last year included $255,000 of tents and $ 550,000 of climbing gear.For next year, management has decided to sell specialty sleeping bags also.As a result of this change, sales projections for next year are $300,000 of tents, $600,000 of climbing gear, and $110,000 of sleeping bags.How much of next year's sales are derived from the side effects of adding the new product to its sales offerings?

Question

Quizplus · Accepted Answer

The side effects of adding the new product are the increase in sales of existing products. Tents increased by $45,000 ($300,000 - $255,000) and climbing gear increased by $50,000 ($600,000 - $550,000), totaling $95,000.

Outdoors Essentials Sells Specialty Equipment for Mountain Climbers