Question
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
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. The level of incremental sales associated with introducing the new one hour photo service is closestto:
| A. | $150,000 | |
| B. | $120,000
| |
| C. | $60,000
| |
| D. | $90,000
|
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
10th edition
978-1260013955, 78034639, 978-0078034633
