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PLS HELP Nvarthoe Bikes could seil its bicycles to retailers either assembled or unassembled. The cont of an unawsembled bike is as follows: The unassembled
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Nvarthoe Bikes could seil its bicycles to retailers either assembled or unassembled. The cont of an unawsembled bike is as follows: The unassembled bikes are sold to retallers at $411 each. Ivanhoe 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 $455 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 fixed overhead as a result of assembling the bikes. Prepare an incremental analyshs for the sell-or-process-further decision (Enter negative amounts using elther o negative sign preceding the number es. 45 or parentheies es. (45). Do not leave ory field blank. Enter O for the amounts.) Should ivanhoe sell or process further? Ivanhoe Bikes should Step by Step Solution
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