What is the level of incremental sales

Reference no: EM13289951

Food for Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one hour photo sales will be to new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one hour service. Suppose that 60% of FFL's current overnight photo customers, half would start taking their film to a competitor that offers one hour photo pocessing if FFL fails to offer the one hour service. What is the level of incremental sales?

Reference no: EM13289951

Questions Cloud

What was the magnitude of the applied horizontal force : While rearranging a dorm room, a student does 400 J of work in moving a desk 2.0 m. What was the magnitude of the applied horizontal force

Calculate the speed of the protons at infinity : A proton is located at the origin, and a second proton is located on the x-axis at x = 5.10 fm (1 fm = 10-15 m). If the two protons are released from rest and the alpha particle remains fixed, calculate the speed of the protons at infinity

Explain element x reacts with hydrogen gas : Element x reacts with Hydrogen gas at 200 deg celsius to form compound Y. When y is heated to a higher temperature, it decomposes to the element x and hydrogen gas in the ratio of 559ml of H2

Reduce employee turnover : Discuss what organizations can do to help reduce employee turnover. You will need to review current (within the past 3 years) articles, journals, text, etc...to thoroughly discuss your position. .

What is the level of incremental sales : Suppose that 60% of FFL's current overnight photo customers, half would start taking their film to a competitor that offers one hour photo pocessing if FFL fails to offer the one hour service. What is the level of incremental sales?

What is the election current in a 2 mm diameter copper wire : What is the election current in a 2 mm diameter copper wire if the electron drift speed is 1 x 10^-4 m/s. express in coloumbs per second and amperes

Explain concentration of pcl5 will be present at equilibrium : K = 0.040 for the reaction below at 450 C. If the reaction starts with 0.20 M Cl2 and 0.20 M PCl3, what concentration of PCl5 will be present at equilibrium. PCl5(g) PCl3(g) + Cl2(g) a) 0.09 M b) 0.13 M c) 0.16 M d) 0.03 M e) 0.20 M

Calculate how much work is done by the crane : One of the most powerful cranes in the world operates in Switzerland. It can slowly raise a load of M = 5230.0 tonnes to a height of h = 12.0 m, How much work is done by the crane

Community efforts and managing public relations : Community Efforts and Managing Public Relations

User Account

All Pages