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The Fluffy Feather Sells Customized Handbags

Question 106

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The Fluffy Feather sells customized handbags.Currently,it sells 18,000 handbags annually at an average price of $89 each.It is considering adding a lower-priced line of handbags that sell for $59 each.The firm estimates it can sell 7,000 of the lower-priced handbags but will sell 3,000 less of the higher-priced handbags by doing so.What is the amount of the sales that should be used when evaluating the addition of the lower-priced handbags?


A) $146,000
B) $275,000
C) $413,000
D) $623,000
E) $680,000

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