Radar Company sells bikes for $510 each. The company currently sells 4,450 bikes per year...
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Radar Company sells bikes for $510 each. The company currently sells 4,450 bikes per year and could make as many as 4,820 bikes per year. The bikes cost $240 each to make: $175 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 370 bikes for $470 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 New Business Contribution margin Incremental income (loss) from new business The company should
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