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

$125,000

per year. FFL currently offers overnight film processing with annual sales of

$80,000.

While many of the one-hour photo sales will be to new customers, FFL estimates that

50%

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 closest to:

A.

$85,000

B.

$62,500

C.

$40,000

D.