Answer:
$825,050,000
Explanation:
Calculation to determine the amount to use as the annual sales when evaluating this project
First step is to calculate the new product line sales
New product line sales =29,000*$24,700
New product line sales = $716,300,000
Second step is to calculate Increased sales of the motor home line
Increased sales=2,500*$84,000
Increased sales = $210,000,000
Third step is to calculate the loss in sales
Loss in sales=750*$135,000
Loss in sales= $101,250,000
Now let calculate the amount to use as the annual sales when evaluating this project
Net sales = $716,300,000 + $210,000,000 - $101,250,000
Net sales = $825,050,000
Therefore the amount to use as the annual sales when evaluating this project is $825,050,000
