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QS 23-6 Additional business LO A1 Radar Company sells bikes for $480 each. The company currently sells 5,000 bikes per year and could make as
QS 23-6 Additional business LO A1 Radar Company sells bikes for $480 each. The company currently sells 5,000 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $290 each to make: $195 in variable costs per bike and $95 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 900 bikes for $450 each. Incremental fixed costs to make this order are $50,000. No other costs will change if this order is accepted. Compute Radar's 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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