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Erosion costs. Fat Tire Bicycle Company currently sells 37,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $120, with a

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Erosion costs. Fat Tire Bicycle Company currently sells 37,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $120, with a production and shipping cost of $40. The company is thinking of introducing an off-road bike with a projected selling price of $380 and a production and shipping cost of $225. The projected annual sales for the off-road bike are 17,000 . The company will lose sales in fat-tire bikes of 9,000 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

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