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QS 25-18 Decision to accept additional business LO A1 Radar Company sells bikes for $420 each. The company currently sells 4,100 bikes per year and
QS 25-18 Decision to accept additional business LO A1 Radar Company sells bikes for $420 each. The company currently sells 4,100 bikes per year and could make as many as 7,000 bikes per year. The bikes cost $275 each to make; $170 in variable costs per bike and $105 of fixed costs per bike. Radar recelved an offer from a potential customer who wants to buy 750 bikes for $362 each. Incremental fixed costs to make this order are $31,500. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Incremental Amount per Fixed Costs Unit Business Contribution margin Incremental income (loss) from new business The company should
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