The discount line is expected to reduce sales of the


A firm currently sells $2,500,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line, and projects sales of $500,000. The discount line is expected to reduce sales of the expensive product line to $2,200,000. What is the incremental revenue associated with the discount product line?

($300,000)

$200,000

$300,000

$500,000

$2,500,000

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Financial Management: The discount line is expected to reduce sales of the
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