Erosion costs. Heavenly Cookie Company reports the following annual sales and costs for its current product line:

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Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra$-$rich brownies would sell for $$0\mathrm{.}93$ a piece and cost $$0\mathrm{.}70$ to produce. The forecasted

brownie volume is $225,000$ per year. Introduction of brownies, however, will reduce cookie sales by $191,000,$ with the following drops in sales per cookie: $112,000$ in

chocolate chip, $35,000$ in snickerdoodle, $27,000$ in peanut butter, $8,000$ in lemon drop, and $9,000$ in cream$-$filled. What is the erosion cost of introducing the brownies? What is the

net change in annual margin if Mississippi Mud brownies are added to the product line?

What is the erosion cost of introducing the brownies?

$

$($Round to the nearest dollar.$)$

What is the net change in annual margin if Mississippi Mud brownies are added to the product line?

$

$($Round to the nearest dollar.$)$

Should the brownies be adopted into the product line? $($Select the best response.$)$

A$.$ Add brownies to the product mix.

B$.$ Do not add brownies to the product mix.