Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. radar company sells bikes for $300 each. the compa

Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes...

90.2K

Verified Solution

Question

Accounting

Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $225 each to make: $150 in variable costs per bike and $75 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 750 bikes for $250 each. Incremental fixed costs to make this order are $60 per bike. No other costs will change if this order is accepted.
(a) Compute the income for the special offer.
(b) Should Radar accept this offer?
\table[[(a) Special offer analysis,Per Unit,Total],[,,],[,,],[Contribution margin,,],[,,],[Income,,],[,,],[(b) The company should,,]]
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In a certain population, 25% of the person smoke and 7% have a certain type of...

Basic Math
Q

Scenario It is 2020, and General Foryota Company opens a plant in which to build a new...

Operations Management
Q

Vector v=(9,0,2) is vector from R3 space. Consider standard inner product in R3. Let W be...

Advance Math
Q

eople who get an influenza vaccine produce antibodies that protect them against being infected by...

Biology
Q

urn in a screen shot of the GAMS solution These problems re as follows Minimize...

Basic Math
Q

April May June July August September October November December Send data to Excel Part 0...

Statistics
Q

Determine whether each relation is a function.((-5, 1), (0, -3), (-2, 1), (10, 11), (7,...

Algebra
Q

Tax Planning - Income Shifting (Taxable Income/Tax Liability) (LO. 7) Leroy and Amanda are married...

Accounting
Q

During 2024, a company sells 290 units of inventory for $91 each. The...

Accounting
Q

Cost of Units Completed and in Process The charges to Work in ProcessAssembly Department for...

Accounting
Q

Accounting
Q

the goal of _________ Advertising is to maintain awareness of the usefulness of a product

Accounting