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Radar Company sells bikes for $330 each. The company currently sells 4,150 bikes per year and could make as many as 5,000 bikes per year.

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Radar Company sells bikes for $330 each. The company currently sells 4,150 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $285 each to make; $175 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 850 bikes for $370 each. Incremental fixed costs to make this order are $54,000. 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 Unit Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should Holmes Company produces a product that can either be sold as is or processed further. Holmes has already spent $58,000 to produce 2,375 units that can be sold now for $81,500 to another manufacturer Alternatively, Holmes can process the units further at an incremental cost of $280 per unit. If Holmes processes further, the units can be sold for $475 each. Compute the incremental income if Holmes processes further. Sell as is Process Further Incremental Amount Sales Additional processing costs Income (loss) The company should

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