Winnebagel Corp. currently sells 42,000 motor homes per year at $63,000 each, and 16,800 luxury motor coaches per year at $119,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 26,600 of these campers per year at $16,800 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 6,300 units per year, and reduce the sales of its motor coaches by 1,260 units per year.

Required :
What is the amount to use as the annual sales figure when evaluating this project?

a. $728,532,000
b. $993,720,000
c. $659,148,000
d. $693,840,000
e. $446,880,000

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.