Varto Company has 9,000 units of its sole product in inventory that it produced last year at a cost of $26 each. This year's model is superior to last year's and the 9,000 units cannot be sold at last year's regular selling price of $52 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $14 each, or (2) they can be processed further at a cost of $186,000 and then sold for $34 each. Prepare an analysis to determine whether Varto should sell the products as is or process them further and then sell them. INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue Incremental net income(Loss) The company should: Radar Company sells bikes for $330 each. The company currently sells 4,150 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $285 each to make; $175 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 850 bikes for $370 each. Incremental fixed costs to make this order are $54,000. 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 Unit Incremental Income from New Business Fixed Costs Contribution margin Incremental income (loss) from new business The company should