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8. Radar Company sells bikes for $480 each. The company currently sells 4,150 bikes per year and could make as many as 4,540 bikes per
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Radar Company sells bikes for $480 each. The company currently sells 4,150 bikes per year and could make as many as 4,540 bikes per year. The bikes cost $235 each to make: $160 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 390 bikes for $450 each. Incremental fixed costs to make this order are $49,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this orderStep by Step Solution
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