Erosion costs. Fat Tire Bicycle Company currently sells 39,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $110, with a production and shipping cost of $30. The company is thinking of introducing an off-road bike with a projected selling price of $375 and a production and shipping cost of $300. The projected annual sales for the off-road bike are 16,000 . 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? What is the erosion cost from the new bike? 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