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Radar Company sells bikes for $480 each. The company currently sells 4,350 bikes per year and could make as many as 4,740 bikes per
Radar Company sells bikes for $480 each. The company currently sells 4,350 bikes per year and could make as many as 4,740 bikes per year. The bikes cost $235 each to make: $180 in variable costs per bike and $55 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 390 bikes for $450 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. Contribution margin Incremental Amount per Unit Incremental Fixed Costs Incremental Income from New Business Incremental income (loss) from new business The company should
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