Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per year and could make as many...

profilebosellamirtim

Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $225 each to make; $150 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 750 bikes for $250 each. Incremental fixed costs to make this order are $50,000. No other costs will change if this order is accepted.

  

Compute Radar’s additional income (ignore taxes) if it accepts this order.

 
    • 10 years ago
    • 999999.99
    Answer(1)

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      answer.xlsx
    Bids(0)