Use the Information for the Question(s)below

question 49

Multiple Choice

Use the information for the question(s) below.
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.
-The level of incremental sales associated with introducing the new one-hour photo service is closest to:

• A)$90,000.
• B)$150,000.
• C)$60,000.
• D)$120,000.

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Definitions:

Candle Makers

Craftspersons or businesses involved in the production of candles for lighting or decorative purposes.

Domestic Consumption

The total amount of goods and services consumed within a country.

Domestic Production

The total value of all goods and services produced within a country's borders in a specific time period.

Free Trade

refers to the absence of tariffs, quotas, and other governmental barriers to international trade, allowing goods and services to move freely across borders.