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 $35. The company is thinking of introducing an off-road bike with a projected selling price of S410 and a production and shipping cost of $360. The projected annual sales for the off-road bike are 12,000. 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 erosion cost from the new bike? $320,000 $520,000 $220,000 $420,000