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

$20,000

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

$90,000.

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

40%

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.

$16,000

B.

$36,000

C.

$20,000

D. $8,000