QUESTION 23

1. Johns Restaurant Furniture sells 4000 plastic chairs, 2,000 metal chairs, and 1,000 wooden chairs each year. John is considering adding a resin chair and expects to sell 2,500 of them. If the new resin chairs are added, John expects that plastic chair sales will decline to 2,200 units and metal chair sales will decline to 1,200 chairs. Sales of the wooden chairs will remain the same. Plastic chairs sell for an average of $75 each. Metal chairs are priced at $65 and the wooden chairs sell for $55 each. The new resin chairs will sell for $50. What is the erosion cost?

   		$169,000
   		$195,000
   		$178,000
   		$187,000
   		$192,000