Fat Tire Bicycle Company currently sells 35,000 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 10,000 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?