A Local pet store Roscoes rascals which has concentrated on selling puppies, is considering adding a line of pet food. A contractor estimates that it will cost $10,000 to convert some storage space into a retail area for the food. Roscoes Rascals will purchase the speciality food for $15 and sell it for $30.
Marketing research indicates that the store will sell 900 bags. Should Roscoes Rascals add pet food to its products?