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Fat tire bicycle company currently sells 3 6 , 0 0 0 bicycles per year. The current bike is a standard balloon tire bike selling
Fat tire bicycle company currently sells bicycles per year. The current bike is a standard balloon tire bike selling for $ with a production and shipping cost of $ The company is thinking of inteoducing an offroad bike with a projected selling price of $ and a production and shipping cost of $ The projected annual sales for the offroad bike are The company will lose sales in fat tire bikes of 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 offroad bike?
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