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IN Radar Company sells bikes for $470 each. The company currently sells 4,300 bikes per year and could make as many as 4
Posted: Thu May 05, 2022 5:25 am
by answerhappygod
- In Radar Company Sells Bikes For 470 Each The Company Currently Sells 4 300 Bikes Per Year And Could Make As Many As 4 1 (19.98 KiB) Viewed 56 times
IN Radar Company sells bikes for $470 each. The company currently sells 4,300 bikes per year and could make as many as 4,610 bikes per year. The bikes cost $250 each to make: $165 in variable costs per bike and $85 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 310 bikes for $430 each. Incremental fixed costs to make this order are $80 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? (a) Special offer analysis Per Unit Total Sales Variable costs Contribution margin Fixed costs (incremental) Income (b) The company should $ 0 Accept special offer 430 165