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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 ________.

A.

$175,000

B.

$139,000

C.

$85,000

D.

$70,000

E.

$36,000

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