Kenny, Inc. currently sells two products. They sell 28,400 units of Product A per year...
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Kenny, Inc. currently sells two products. They sell 28,400 units of Product A per year and they sell these at an average cost of $75,000 each. They sell 7,400 units of Product B per year and they sell these at an average cost of $117,000 each. Kenny, Inc. wants to introduce a new product that will be called Product C. They estimate that they can sell 23,400 units of Product C each year with an averge selling price of $21,000 each. The Market Research department made a calculation that says by launching Product C, the sales of Product A will increase by 3,000 units annually but the sales of Product B will go down by 890 units annually.
Calculate the appropriate amount of the annual sales figure that should be used when analyzing this new product. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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