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

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	Chocolate Chip	Snicker- doodle	Peanut Butter	Lemon Drop	Cream- Filled
Volume	253,000	206,000	140,000	85,000	96,000
Price	$0.40	$0.46	$0.52	$0.48	$0.55
Cost	$0.23	$0.19	$0.17	$0.21	$0.33

Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich brownies would sell for

$0.94

a piece and cost

$0.80

to produce. The forecasted brownie volume is

225,000

per year. Introduction of brownies, however, will reduce cookie sales by

181,500,

with the following drops in sales per cookie:

100,000

in chocolate chip,

38,000

in snickerdoodle,

25,000

in peanut butter,

9,000

in lemon drop, and

9,500

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?