Outdoors Essentials Sells Specialty Equipment for Mountain Climbers

Outdoors Essentials sells specialty equipment for mountain climbers.Its sales for last year included $255,000 of tents and $ 550,000 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 $300,000 of tents, $600,000 of climbing gear, and $110,000 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?

A) $0
B) $205,000
C) $95,000
D) $145,000
E) $110,000

Correct Answer:

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