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Fat Chance Bicycle Company currently sells 4 0 , 0 0 0 bicycles per year. The current bike is a standard balloon - tire bike,

Fat Chance Bicycle Company currently sells 40,000 bicycles per year. The current bike is a standard balloon-tire bike, selling for $90 with a production and shipping cost of $35. The company is thinking of introducing an off-road bike with a projected selling price of $410 and a production and shipping cost of $360. The projected annual sales are 12,000 off-road bikes. The company will lose sales in fat-tire bikes of 8,000 units per year if it introduces the new bike, however. What is the net annual cash flow if Fat Chance sells both bikes?

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