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Radar Company sells bikes for $510 each. The company currently sells 4,200 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $255 each to make: $180 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $490 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Incremental Incremental Income from New Business Amount per Fixed Unit Costs Contribution margin Incremental income (loss) from new business The company should

Radar Company sells bikes for $510 each. The company currently sells 4,200 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $255 each to make: $180 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $490 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Incremental Incremental Income from New Business Amount per Fixed Unit Costs Contribution margin Incremental income (loss) from new business The company should

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Radar Company sells bikes for $510 each. The company currently sells 4,200 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $255 each to make: $180 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $490 each. Incremental fixed costs to make this order are $46,000. 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 Incremental Income from New Business Fixed Costs Contribution margin Incremental income (loss) from new business The company should
Transcribed Image Text:Radar Company sells bikes for $510 each. The company currently sells 4,200 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $255 each to make: $180 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $490 each. Incremental fixed costs to make this order are $46,000. 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 Incremental Income from New Business Fixed Costs Contribution margin Incremental income (loss) from new business The company should
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