Question
Cannibalization It is 1995 and Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects
Cannibalization It is 1995 and Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one hour photo sales will be to new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one hour service. Calculate the incremental sales associated with introducing one hour photo service.
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