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QS 23-15 Special offer LO P7 Radar Company sells bikes for $540 each. The company currently sells 4,150 bikes per year and could make as
QS 23-15 Special offer LO P7 Radar Company sells bikes for $540 each. The company currently sells 4,150 bikes per year and could make as many as 4,530 bikes per year. The bikes cost $290 each to make: $185 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $520 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order. Incremental Amount per Unit Incremental Fixed Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should
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