Bubbly Waters currently sells 480 Class A spas, 630 Class C spas, and 380 deluxe...
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Bubbly Waters currently sells 480 Class A spas, 630 Class C spas, and 380 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 555 units per year. However, if the new spa is added, Class A sales are expected to decline to 315 units while the Class C sales are expected to increase to 655. The sales of the deluxe model will not be affected. Class A spas sell for an average of $15,500 each. Class C spas are priced at $7,800 and the deluxe models sell for $18,800 each. The new mid-range spa will sell for $9,800. What annual sales figure should you use in your analysis?
Multiple Choice
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$7,801,500
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$2,362,500
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$8,191,500
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$5,439,000
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$3,076,500
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