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FFL, a grocery store is considering offering one hour photo in their store. the first expecta that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight photo with annual sales of $90,000. while many of the one hour photo sales will be to new customers, they estimate that 50% of their current overnight customers will switch and use the one hour service. the level of incremental sales associated with introducing the new one hour photo service is closest to:

O A. $75,000 O B. $105,000 O C. $150,000 OD. $45,000
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Answer #1

Given that the expected sales from the new one hour machine will be $150,000

Now, loss from their current overnight customers = 50% of $90000 = $45000

Therefore, the level of incremental sales associated with introducing the new one hour photo service = $150,000 - $45,000 = $105,000 (option B​​​​​​).

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