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Radar Company sells bikes for $550 each. The company currently sells 4,300 bikes per year and could make as many as 4,670 bikes per year.
Radar Company sells bikes for $550 each. The company currently sells 4,300 bikes per year and could make as many as 4,670 bikes per year. The bikes cost $230 each to make: $165 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 370 bikes for $540 each. Incremental fixed costs to make this order are $49,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order.
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