Rex's RVs currently sells 195 Class A motor homes, 260 Class C motor homes, and 255 pop-up trailers each year. They are considering adding a mid-range camper with expected annual sales of 340 units. However, if the new camper is added, Class A sales will decline to 90 units and the Class C camper sales will decline to 250 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $157,500 each. Class C homes are priced at $64,000, and the pop-ups sell for $6,900 each. The new mid-range camper will sell for $41,000

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)