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SHOW ALL WORK Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one
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Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its Chicago locations. The company expects that sales from the new 15-minute service will be $145,000 per year. Delta Sonic currently offers a 1-hour wash/wax/detail service with annual sales of $267,500. While many of the 15-minute sales will be to new customers who, in the past, could not wait a full hour to have their car detailed, Delta Sonic estimates that 20% of their 1-hour sales will be lost as a result of existing customers switching to the new, faster service. The level of incremental sales associated with introducing the new 15-minute wash/wax service that should be used when analyzing this project is closest to A. $53,500 B. $198,500 C. $91,500 D. $145,000 E. $29,000 Step by Step Solution
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