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Rex's RVs currently sells 185 Class A motor homes, 240 Class C motor homes, and 265 pop-up trailers each year. They are considering adding a

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Rex's RVs currently sells 185 Class A motor homes, 240 Class C motor homes, and 265 pop-up trailers each year. They are considering adding a mid-range camper with expected annual sales of 320 units. However, if the new camper is added, Class A sales will decline to 125 units and the Class C camper sales will decline to 210 units. The sales of pop-ups will not be affected, Class A motor homes sell for an average of $155,500 each. Class C homes are priced at $63,600, and the pop-ups sell for $6,700 each. The new mid-range camper will sell for $41,200 What is the annual erosion cost of adding the mid-range camper? Erosion cost =$ (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)

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