Despite the fact that they are selling their microprocessors at a deficit, Computers North America will further lower their retail prices next month. The company expects the price drop to increase sales by twenty percent. Because the revenue from those additional sales will more than compensate for the revenues lost from the price drop, the company thinks that their microprocessors will turn a profit as soon as next year.
Which of the following, if true, provides the most support for Computers North America’s expectation of making a profit after further lowering the price of their microprocessors?