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Ch. 23 HW Saved 1 Radar Company sells bikes for $520 each. The company currently sells 4,200 bikes per year and could make as many
Ch. 23 HW Saved 1 Radar Company sells bikes for $520 each. The company currently sells 4,200 bikes per year and could make as many as 4,550 bikes per year. The bikes cost $255 each to make: $155 in variable costs per bike and $100 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 350 bikes for $490 each. Incremental fixed costs to make this order are $41,000. No other costs will change if this order is accepted. 25 points Compute Radar's additional income (ignore taxes) if it accepts this order. eBook Incremental Incremental Amount per Fixed Unit Costs Incremental Income from New Business Hint Contribution margin Print Incremental income (loss) from new business The company should References
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