Rex's RVs currently sells 110 Class A motor homes, 310 Class C motor homes, and 230 pop-up trailers each year. They are considering adding a mid-range camper with expected annual sales of 390 units. However, if the new camper is added, Class A sales will decline to 115 units and the Class C camper sales will decline to 240 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $162,500 each. Class C homes are priced at $65,000, and the pop-ups sell for $7,400 each. The new mid-range camper will sell for $40,500

What is the annual erosion cost of adding the mid-range camper?

Erosion cost = $ (list this as an absolute value)

What is the total annual incremental cash flow from the new product?

Incremental cash flow = $ (list as a positive or negative, depending on if new revenue outweighs erosion costs)