Radar Company sells bikes for $470 each. The company currently sells 3,900 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $265 each to make: $160 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 600 bikes for $440 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 Kando Company incurs a $11.00 per unit cost for Product A, which it currently manufactures and sells for $22.00 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $20.40 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $11.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Make Buy Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should: Signal mistakenly produced 1,075 defective cell phones. The phones cost $63 each to produce. A salvage company will buy the defective phones as they are for $40 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $140 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones. Scrap Rework Sales Rework costs Total Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,550 production hours available. Contribution margin is $6 for product X and $5 for product Y. 1. Calculate contribution margin per production hour. Contribution Margin per Production Hour Product X Product Y Contribution margin per production hour