Radar Company sells bikes for $460 each. The company currently sells 4.250 bikes per year...
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Radar Company sells bikes for $460 each. The company currently sells 4.250 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $235 each to make: $160 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 900 bikes for $410 each. Incremental fixed costs to make this order are $42.000. No other costs will change if this order is accepted. Compute Radar's additional income ignore taxes) if it accepts this order Incremental Amount per Unit incremental Fixed Costs Incremental Income from Now Business Sales Variable cost Contribution margin Fbed costs Incremental income (los) from new business The company should
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