Use the Information for the Question(s)below

question 46

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.
-Suppose that of the 60% of FFL's current overnight photo customers,half would start taking their film to a competitor that offers one-hour photo processing if FFL fails to offer the one-hour service.The level of incremental sales in this case is closest to:

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

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Definitions:

Residential Mortgage Loans

Loans borrowed by individuals for the purpose of purchasing residential properties, secured by the property itself.

Restrictive Covenants

Clauses in a contract or deed that limit how a piece of property can be used, to protect the value of adjacent properties or enforce a particular standard.

Eminent Domain

The authority of a government to take private property for public purposes, providing payment to the property owner.

Zoning

The regulatory process of dividing land into areas with specific uses, such as residential, commercial, or industrial, to control urban development.