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What is the annual erosion cost of adding

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Jamie's Motor Home Sales currently sells 110 Class A motor homes, 220 Class C motor homes, and 280 pop-up trailers each year. They are considering adding a mid-range camper with expected annual sales of 300 units. However, if the new camper is added, Class A sales will decline to 85 units and the Class C camper sales will decline to 200 units. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $140,000 each. Class C homes are priced at $59,500, and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the annual erosion cost of adding the mid-range camper?

Reference no: EM133069759

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