3. Top Gear Bikes could sell its bicycles to retailers either assembled or unassembled The cost of an unassembled bike is as follows $150 70 49 21 $290 Direct materials Direct labor Variable overhead (70% of direct labor) Fixed overhead (30% of direct labor) Total manufacturing cost per unit The unassembled bikes are sold to retailers at S400 each. Top Gear currently has unused productive capacity that is expected to continue indefinitely; management has concluded that some of this capacity can be used to assemble the bikes; the assembled bikes could be sold for $450 each. Assembling the bikes will increase direct materials by $5 per bike, and direct labor by $20 per bike Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the bikes. The demand for unassembled versus assembled bikes is the same Instructions Should Top Gear sell unassembled or assembled bikes? Why or why not