Foamsoft Currently Sells 16,850 Pairs of Shoes Annually at an Average

Multiple Choice

Foamsoft currently sells 16,850 pairs of shoes annually at an average price of $79 a pair.It is considering adding a new line of shoes that would sell for $49 a pair.The company estimates it can sell 5,000 pairs of the lower-priced shoes annually but will sell 1,250 less pairs of the higher-priced shoes each year by doing so.What is the estimated value of the annual erosion cost that should be charged to the lower-priced shoe project?

A) $138,750
B) $146,250
C) $98,750
D) $52,000
E) $123,240