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Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its locations.
Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its locations. The firm expects that sales from the new 15-minute service will be $175,000 per year. Delta Sonic currently offers a 1-hour wash/wax/detail service with annual sales of $90,000. While many of the 15-minute sales will be to new customers, Delta Sonic estimates that 40% of their 1-hour customers will switch and use the 15-minute service. The level of incremental sales associated with introducing the new 15-minute wash/wax service is closest to O a. $70,000 O b. $36,000 Oc. $175,000 Od. $85,000 e $139,000 Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its locations. The firm expects that sales from the new 15-minute service will be $175,000 per year. Delta Sonic currently offers a 1-hour wash/wax/detail service with annual sales of $90,000. While many of the 15-minute sales will be to new customers, Delta Sonic estimates that 40% of their 1-hour customers will switch and use the 15-minute service. The level of incremental sales associated with introducing the new 15-minute wash/wax service is closest to O a. $70,000 O b. $36,000 Oc. $175,000 Od. $85,000 e $139,000
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