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Radar Company sells bikes for $440 each. The company currently sells 5,150 bikes per year and could make as many as 7,000 bikes per year.
Radar Company sells bikes for $440 each. The company currently sells 5,150 bikes per year and could make as many as 7,000 bikes per year. The bikes cost $290 each to make; $150 in variable costs per bike and $140 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 775 bikes for $380 each. Incremental fixed costs to make this order are $43,400. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. 3 Incremental Incremental Amount per Fixed Unit 5 Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should
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