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Cash and Go (CSG) is a grocery store. It 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. CSG currently offers overnight film processing with annual sales of $100,000. While many of the one-hour photo sales will be to new customers, CSG estimates that 70% of their current overnight photo customers will switch and use the one-hour service.
-Estimate level of incremental sales associated with introducing the new one-hour photo service.
-Suppose that of the 70% of CSG's current overnight photo customers, half would start taking their film to a competitor that offers one-hour photo processing if CSG fails to offer the one-hour service. Estimate the level of incremental sales in this case.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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