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 closest to: a. $90,000. b. $150,000. c. $60,000. d. $120,000
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