Erosion costs. Fat Tire Bicycle Company currently sells 40.000 bicycles per year. The current bike is a standard balloon-tire bike selling for $100, with a production and shipping cost of $25. The company is thinking of introducing an off-road bike with a projected selling price of $375 and a production and shipping cost of $225. The projected annual sales for the off-road bike are 14,000. The company will lose sales in fat-tire bikes of 8.500 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 ofl-road bike? What is the erosion cost from the new bike? (Round to the nearest dollar)