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Sierra Nevada mountain gear sells 1 million 1 - person tents per year at $ 2 5 5 each. Production and distribution costs $ 8

Sierra Nevada mountain gear sells 1 million 1-person tents per year at $255 each. Production and distribution costs $86 per tent. They are considering producing a 2-person tent that will cost $190 to produce and distribute. Then believe they can sell 600,0002-person tents per year at a price of $466 each. If they introduce the 2-person tent, they estimate that sales of the 1-person tents will decline by 200,000 units per year. What is the annual erosion cost from the 2-person tent?

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