Outdoors sells specialty tents for mountain climbers. Its sales for last year included $98,000 of tents and $146,000 of climbing gear. For next year, management has decided to sell specialty sleeping bags also. As a result of this change, sales projections for next year are $101,000 of tents, $158,000 of climbing gear, and $32,000 of sleeping bags. How much of next year's sales are derived from the side effects of adding the new product to its sales offerings

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21-10-2021
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Outdoors sells specialty tents for mountain climbers. Its sales for last year included $98,000 of tents and $146,000 of climbing gear. For next year, management has decided to sell specialty sleeping bags also. As a result of this change, sales projections for next year are $101,000 of tents, $158,000 of climbing gear, and $32,000 of sleeping bags. How much of next year's sales are derived from the side effects of adding the new product to its sales offerings

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topeadeniran2 topeadeniran2 · Answer 1 · 2021-11-03T00:40:53+01:00

The amount from next year's sales that will be derived from the side effects of the sum of the new product to its sales offerings will be $15000.

The calculation for next year's sales that will be derived from the side effects will be calculated thus:

= (Next year sales projection for tents + Next year sales projection for climbing gear) - (Last year sales for tents + Last year sales for climbing gear)

= ($101000 + $158000) - ($98000 + $146000)

= $259000 - $244000

= $15000

In conclusion, the correct option will be $15000.

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