Radar Company sells bikes for $440 each. The company currently sells 5,250 bikes per year...
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Radar Company sells bikes for $440 each. The company currently sells 5,250 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $255 each to make: $160 in varlable costs per bike and $95 of fixed costs per bike. Radar received an offer from a potential customer who wents to buy 850 bikes for $390 each. Incremental fixed costs to make this order are $44,000. No other costs will change If this order is accepted Compute Redars additional income ignore taxes) if it accepts this order Amount per Fixed CostsBusiness Income from Neww Unit Contrbution margin $ Paxed coats Incremental income (loss) from new business The company should Prev 7 f 16 Next>
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