1-Radar Company sells bikes for $500 each. The company currently sells 4,100 bikes per year and could make as many as 4,460 bikes per year. The bikes cost $300 each to make: $195 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 360 bikes for $470 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order.

2- Kando Company incurs a $9.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $7.00 per unit and sell it for $11.10 per unit. If it does so, unit sales would remain unchanged and $7.00 of the $9.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.)