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Radar Company sells bikes for $520 each. The company currently sells 4,500 bikes per year and could make as many as 4,870 bikes per year.
Radar Company sells bikes for $520 each. The company currently sells 4,500 bikes per year and could make as many as 4,870 bikes per year. The bikes cost $265 each to make: $150 in variable costs per bike and $115 of fixed costs per bike, Radar received an offer from a potential customer who wants to buy 370 bikes for $500 each. Incremental fixed costs to make this order are $49,000. 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 Fixed Unit Costs Incremental Income from New Business Sales Variable cost Contribution margin Incremental income foss) from new business The company should
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