Radar Company sells bikes for $510 each. The company currently sells 4,300 bikes per year and could make as many as 4,660 bikes per year. The bikes cost $250 each to make: $185 in variable costs per bike and $65 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 360 bikes for $470 each. Incremental fixed costs to make this order are $70 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? (a) Special offer analysis Per Unit Incremental Fixed Costs Total Contribution margin Income 0 (b) The company should Beto Company pays $4.50 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $4.20 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? Make Buy (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $2.15 for direct materials and $1.70 for direct labor. Incremental overhead to make this part is $1.78 per unit. The company can buy the part for $5.97 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? Make Buy (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Cobe Company has manufactured 220 partially finished cabinets at a cost of $55,000. These can be sold as is for $66,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $13,200, and the finished cabinets could be sold for $88,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? (a) Sell or Process Analysis Sell As Is Process Further Revenue Costs Income Incremental income (loss) to process further (b) The company should