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A retail grocery chain is considering developing its own store brand of canned vegetables. The chain's current profit margin on canned vegetables is 1 %

A retail grocery chain is considering developing its own store brand of canned vegetables. The chain's current profit margin on canned vegetables is 1% on annual sales of $24 million. The store brand will sell for a lower price, but management believes consumers will buy more units, so they expect sales to be $28 million. In addition, the profit margin will increase to 1.3%. How much additional profit will the chain make if they make the switch, and their forecasts are accurate?
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