Erosion costs. Fat Tire Bicycle Company currently sells 37,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $100, with a production and shipping cost of $35. The company is thinking of introducing an off-road bike with a projected selling price of $370 and a production and shipping cost of $300. The projected annual sales for the off-road bike are 15,000. 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 bike? Should Fat Tire start producing the off-road bike? What is the erosion cost from the new bike? $L (Round to the nearest dollar.) Should Fat Tire start producing the off-road bike? (Select the best response.) 0 A. No, because it does not improve the profitability of the company. O B. Yes, because it contributes an additional $595,000 of cash flow