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Radar Company sells bikes for $530 each. The company currently sells 4,250 bikes per year and could make as many as 4,580 bikes per year.
Radar Company sells bikes for $530 each. The company currently sells 4,250 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $270 each to make: $195 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 330 bikes for $510 each. Incremental fixed costs to make this order are $40,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Answer is not complete. Incremental Amount per Unit Incremental Fixed Costs Incremental Income from New Business Sales 510 Variable cost 195 Contribution margin $ 115 X Fixed costs $ 40,000 Incremental income (loss) from new business The company should
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