Classic Motor Homes Inc. currently sells 1,000 Class A motor homes, 2,500 Class C motor homes, and 4,000 pop-up trailers each year. The CEO is considering adding a mid-range camper and expects that if she does so shecan sell 1,500 of them. However, if the new camper is added, Jamie expectsthat her Class A sales will decline to 900 units while the Class C campers decline to 2,300. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $125,000 each. Class C homes are priced at $39,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $47,900. What is the erosion cost? 

Answer rating: 100% (QA)

Class A Loss of sales 100 ... View the full answer