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Crane Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows. The unassembled bikes are

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Crane Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows. The unassembled bikes are sold to retalers at $531 each. Crane has unused productive capacity that is expected to continue indefinitely, management has concluded that some of this capacity could be used to assemble the bikes and sell them at $575 each. Assembling the bikes will increase direct materials by $5 per bike and direct labor by $10 per bike. Additional variable overhead will be incurred at the normal rates, but there will be no additional foed overhead as a result of assembling the bikes. (a) Prepare an incremental analysis for the sell-or-process-further decision. (Enter negative amounts using either a nejative sign preceding the number e.g. -45 or parentheses e.s. (45). Do not leave any field blank. Enter 0 for the amounts.)

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