QS 23-15 Special offer LO P7 Radar Company sells bikes for $530 each. The company currently sells 4.150 bikes per year and could make as many as 4,450 bikes per year. The bikes cost $265 each to make: $155 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 300 bikes for $500 each. Incremental fixed costs to make this order are $41,000. 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
QS 23-15 Special offer LO P7 Radar Company sells bikes for $530 each. The company currently sells 4.150 bikes per year and could make as many as 4,450 bikes per year. The bikes cost $265 each to make: $155 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 300 bikes for $500 each. Incremental fixed costs to make this order are $41,000. 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
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 9PROB
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