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O'Brien Company sells mopeds for $510 each. The company currently sells 4,350 mopeds per year and could make as many as 4,720 mopeds per year.
O'Brien Company sells mopeds for $510 each. The company currently sells 4,350 mopeds per year and could make as many as 4,720 mopeds per year. The mopeds cost $255 each to make: $195 in variable costs per moped and $60 of fixed costs per moped. O'Brien received an offer from a potential customer who wants to buy 370 mopeds for $470 each. Incremental fixed costs to make this order are $42,000. No other costs will change if this order is accepted. Compute O'Briens additional income (ignore taxes) if it accepts this order.
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