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Jenna's Home Spa Sales currently sells 2,000 Class A spas, 5,000 Class C spas, and 1,000 deluxe model spas each year. Jenna is considering adding

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Jenna's Home Spa Sales currently sells 2,000 Class A spas, 5,000 Class C spas, and 1,000 deluxe model spas each year. Jenna is considering adding a mid-class spa and expects that if she does she can sell 2,500 of them. However, if the new spa is added, Jenna expects that her Class A sales will decline to 1,700 units while the Class C sales decline to 4,500. The sales of the deluxe model will not be affected. Class A spas sell for an average of $75,000 each. Class C spas are priced at $25,000 and the deluxe model sells for $100,000 each. The new mid-range spa will sell for $50,000. What is the erosion cost? $240,000,000 $90,000,000 $125,000,000 $205,000,000 $35,000,000

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