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Potter Products, Inc. is interested in producing and selling an improved widget Market research indicates that customers would be willing to pay $90 for such

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Potter Products, Inc. is interested in producing and selling an improved widget Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. Potter requires a 25% return on sales and is able to achieve this target. Potter has learned that a competitor, Dumbledore Devices, Corporation, plans to introduce a similar widget at a price of $80. At a price of $80, Potter's market research indicates that it can sell 60,000 units per year. Assuming Potter can reach its new target cost, how will Potter's profit at the $80 price compare to what it would have earned in the absence of the competitor's product (round to nearest $1,000)

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