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Radar Company sells bikes for $450 each. The company currently sells 4,200 bikes per year and could make as many as 4,570 bikes per
Radar Company sells bikes for $450 each. The company currently sells 4,200 bikes per year and could make as many as 4,570 bikes per year. The bikes cost $285 each to make: $165 in variable costs per bike and $120 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 370 bikes for $420 each. Incremental fixed costs to make this order are $44,000. 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 Unit Fixed Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should
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