Jamie's Motor Home Sales Currently Sells 110 Class a Motor

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?

A) $5,425,000
B) $4,690,000
C) $5,375,000
D) $6,315,000
E) $7,875,000