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Radar Company sells bikes for $540 each. The company currently sells 4,400 bikes per year and could make as many as 4,720 bikes per year.
Radar Company sells bikes for $540 each. The company currently sells 4,400 bikes per year and could make as many as 4,720 bikes per year. The bikes cost $255 each tonmake: $190 in variable costs per bike and $65 of fixed costs per bike. Radar recieved an offer from a potential customer who wants to but 320 bikes for $530 each. Incremental fixed costs to make this otder are $48,000. 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 Contribution margin Incremental income (loss) from new business The company should
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