Erosion costs. Fat Tire Bicycle Company currently sells 37,000 bicycles per year. The current bike is a standa thinking of introducing an off-road bike with a projected selling price of $390 and a production and shipping cost in fat-tire bikes of 7,000 units per year if it introduces the new bike, however. What is the erosion cost from the What is the erosion cost from the new bike? S (Round to the nearest dollar) 37,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $100, with a production and shipping cost of $35. The company is thinking of introducing an off-road bike with a projected selling price of $370 and a production and shipping cost of $275. The projected annual sales for the off road bike are 14,000. The company will lose sales in fat-tire bikes of 8,000 units per year if it introduces the new bike, however. What is the erosion cost from the new bike? Should Fat Tire start producing the oft-road bike?