value: 1.00 points Radar Company sells bikes for $410 each. The company currently sells 4,250...
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value: 1.00 points Radar Company sells bikes for $410 each. The company currently sells 4,250 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $245 each to make; $185 in variable costs per bike and $60 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 750 bikes for $370 each. Incremental fixed costs to make this order are $52,000. No other costs will change if this order is accepted Compute Radar's additional income (ignore taxes) if it accepts this order Incremental Incremental Amount per Unit Fixed Costs Income from New Business 370 185 185 Sales 277,500 riable cost Contribution margin$ Fixed costs Incremental income (loss) from new business The company should $52,000 52,000
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