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Radar Company sells bikes for $540 each. (column choices, contribution margin, fixed costs, sales, variable cost QS 23-15 Special offer LO P7 Radar Company sells
Radar Company sells bikes for $540 each. (column choices, contribution margin, fixed costs, sales, variable cost
QS 23-15 Special offer LO P7 Radar Company sells bikes for $540 each. The company currently sells 4.500 bikes per year and could make as many as 4,890 bikes per year. The bikes cost $290 each to make: $150 in variable costs per bike and $140 of fixed costs per bike, Radar received an offer from a potential customer who wants to buy 390 bikes for $520 each. Incremental fixed costs to make this order are $42,000. 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 Step by Step Solution
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