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Use the information for the question below. Safeway is considering offering ten-minute photo developing in their store. The firm expects that sales from the new
Use the information for the question below. Safeway is considering offering ten-minute photo developing in their store. The firm expects that sales from the new ten-minute machine will be $200,000 per year. Safeway currently offers overnight film processing with annual sales of $180,000. While many of the ten-minute photo sales will be to new customers, Safeway estimates that 60% of their current overnight photo customers will switch and use the ten-minute service. Suppose that of Safeway's current customers who will switch from Safeway's overnight photo service to its ten-minute photo service, 90% would start taking their film to a competitor that offers express photo processing if Safeway fails to offer the ten-minute service. The level of incremental sales associated with introducing the new ten-minute photo service is closest to: $38,000$102,800 None of the other answers are correct. $92,000$189,200
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