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Radar Company sells bikes for $550 each. The company currently sells 4.200 bikes per year...

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Radar Company sells bikes for $550 each. The company currently sells 4.200 bikes per year and could make as many as 4,590 bikes per year. The bikes cost $260 each to make: $195 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 390 bikes for $510 each. Incremental fixed costs to make this order are $50,000. 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 New Business Contribution margin Incremental income (loss) from new business The company should Rory Company has a machine with a book value of $105,000 and a remaining five-year useful life. A new machine is available at a cost of $123,000, and Rory can also receive 579,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $23,500 per year over its five-year useful life. Calculate the Incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)

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