Heavenly is thinking of adding Mississippi Mud brownies to the product line. The ultra-rich mud brownies would sell for $1.00 apiece and cost $0.80 to produce. The forecasted brownie volume is 110,000 per year. Introduction of brownies, however, will reduce cookie sales by 13,000, each flavor (13,000 in chocolate chip, 13,000 in snickerdoodle and 13,000 in peanut butter). 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?

brownies are added to the product Choco chip|Snicker doodlePeanut butter Volumel100000 90000 Price 0,45 cost 0,20 0,40 0,15 80000 0,35 0,10