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Rex's RVs currently sells 170 Class A motor homes, 360 Class C motor homes, and 280 pop-up trailers each year. They are considering adding a

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Rex's RVs currently sells 170 Class A motor homes, 360 Class C motor homes, and 280 pop-up trailers each year. They are considering adding a mid-range camper with expected annual sales of 420 units. However, if the new camper is added, Class A sales will decline to 110 units and the Class C camper sales will decline to 310 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $152,500 each. Class C homes are priced at $63,000, and the pop-ups sell for $6,400 each. The new mid-range camper will sell for $41,500 What is the annual erosion cost of adding the midrange camper? Erosion cost =$ (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)

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