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Continue Radar's additional income (ignore taxes) if it accepts this order. Radar Company sells bikes for $500 each. The company currently sells 4,900 bikes per
Continue Radar's additional income (ignore taxes) if it accepts this order.
Radar Company sells bikes for $500 each. The company currently sells 4,900 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $295 each to make; $190 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 775 bikes for $360 each. Incremental fixed costs to make this order are $54,000. 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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