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Strike441 [17]
3 years ago
13

The Fluffy Feather sells customized handbags. Currently, it sells 18,000 handbags annually at an average price of $89 each. It i

s considering adding a lower-priced line of handbags that sell for $59 each. The firm estimates it can sell 7,000 of the lower-priced handbags but will sell 3,000 less of the higher-priced handbags by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced handbags?
Business
1 answer:
MAVERICK [17]3 years ago
8 0

Answer: $146,000

Explanation: $146,000

Sales = (Firms estimates x low-priced line) - (Higer-Priced line x Average Price)

(7,000 × $59) + (-3,000 × $89) = $146,000

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4 years ago
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