Radar Company sells bikes for $540 each. The company currently sells 4,200 bikes per year and could make as many as 4,510 bikes per year. The bikes cost $245 each to make: $155 in variable costs per bike and $90 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 310 bikes for $510 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 (gnore taxes) if it accepts this order, Incremental Incremental Amount per Fixed Costs Incremental Income from New Business Unit Contribution margin Incremental income (loss) from new business The company should [The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. Dept. M $68,000 Dept. N $ 38,000 Dept. P $47,000 Dept. T $ 33,000 Total $251,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 12,300 53,800 66,100 $ 1,900 39,400 15,600 55,000 $(17,000) Dept. 0 $65,000 23,900 4,700 28,600 $36,400 16,500 36,480 52,900 $(5,900) 42,300 134,400 13,300 123,800 55,600 258, 200 $(22,600) $ (7,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. T Total $ $ 0 0 Sales Expenses Avoidable Unavoidable 0 0 Total expenses Net Income (los) $ 0 $ OS 0 $ 0 S 0 $ 0 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $37,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $47,000. Variable manufacturing costs are $33,900 per year for this machine. Information on two alternative replacement machines follows. Cost Variable manufacturing costs per year Alternative A $120,000 22,900 Alternative B $115,000 10,400 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Alternative A Alternative B Xinhong Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign) ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income $ 0 Alternative 8 >