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Erosion costs. Fat Tire Bicycle Company currently sells 36,000 bicycles per year. The current bike is a standard balloon tire bike selling for $100, with

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Erosion costs. Fat Tire Bicycle Company currently sells 36,000 bicycles per year. The current bike is a standard balloon tire bike selling for $100, with a production and shipping cost of $30. The company is thinking of introducing an off-road bike with a projected selling price of $390 and a production and shipping cost of $275 The projected annual sales for the off-road bike are 17,000. The company will lose sales in fat-tire bikes of 7,000 units per year if it introduces the new bike, however, What is the erosion cost from the new biko? Should Fat Tiro start producing the off-road biko? Hel GEEN What is the erosion cost from the new bike? (Round to the nearest dollar)

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