Erosion costs. fat tire bicycle company currently sells 40 comma 000 bicycles per year. the current bike is a standard balloon-tire bike selling for $90, with a production and shipping cost of $35. the company is thinking of introducing an off-road bike with a projected selling price of $410 and a production and shipping cost of $360. the projected annual sales for the off-road bike are 12 comma 000. the company will lose sales in fat-tire bikes of 8 comma 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 off-road bike?

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.