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XYZ, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its Houston locations.

XYZ, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its Houston locations. The company expects that sales from the new 15-minute service will be

$150,000

per year. XYZ currently offers a 1-hour wash/wax/detail service with annual sales of

$275,000.

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, XYZ estimates that

20%

of their 1-hour sales will be lost as a result of existing customers switching to thenew, 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.

$150,000

B.

$30,000

C.

$55,000

D.

$95,000

E.

$205,000

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