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Fred's Frozen Legumes, a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one-hour

Fred's Frozen Legumes, 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. Fred's currently offers overnight film processing with annual sales of $100,000. While many of the one-hour photo sales will be to new customers, Fred's estimates that 60% of their current overnight photo customers will switch and use the one-hour service. Suppose that of the 60% of Fred's current overnight photo customers, half would start taking their film to a competitor that offers one-hour photo processing if Fred's fails to offer the one-hour service. The level of incremental sales in this case is

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