Jamie's Motor Home Sales currently sells 1,000 Class A motor homes, 2,500 Class C motor homes, and 4,000 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects
That if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects
That her Class A sales will decline to 950 units while the Class C campers decline to 2,200. The
Sales of pop-ups will not be affected. Class A motor homes sell for an average of $125,000 each.
Class C homes are priced at $39,500 and the pop-ups sell for $5,000 each. The new mid-range
Camper will sell for $47,901. What is the erosion cost?
A) $6,250,000
B) $18,100,000
C) $53,750,000
D) $93,150,000
E) $118,789,500
Correct Answer:
Verified
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