omework ?\\GQS 25-12 Decision To Acxn ? ezto.mheducation.com/hm.tpx??0.975890803

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omework ?GQS 25-12 Decision To Acxn ? ezto.mheducation.com/hm.tpx??0.9758908039646909_152440673 1724 Qs 23-6 Decision to accept additional business LO A1 Radar Company sells bikes for $330 each. The company currently sells 3900 bikes per year and could make as many as 5,000 bikes per year. The bikes cost 5300 each to make: $160 in variable costs per bike and $140 of fixed costs per bike Radar received an offer from a potential customer who wants to buy 1.100 bikes for $360 each. Incremental fixed costs to make this order are $55,000 No other costs will change if this order is accepted Compute Radar's additional income (ignore taxes) if i accepts this order Incremental Incremental Incremental Amount per Fixed Income from New Unit Costs Business Contribution margin Incremental income (loss) from new business The company should References eBook & Resources O Type here to search ?tD e???@@kB

Explanation / Answer

Incremental Amount per Unit Incremental Fixed Costs Incremental Income from New Business Sales $360 $396,000 Variable cost $160 $176,000 Contribution margin $200 $220,000 Fixed costs $55,000 $55,000 Incremental income (loss) from new business $165,000 The company should Accept the order

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