Question

Check my work QS 23-6 Additional business LO A1 1.42 points Radar Company sells bikes for $390 each. The company currently sells 4,800 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $295 each to make: $175 in variable costs per bike and $120 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 900 bikes for $350 each. Incremental fixed costs to make this order are $48,000. No other costs will change if this order is accepted. Compute Radar's additional income ignore taxes) if it accepts this order. eBook Hint Incremental Incremental Amount per Fixed Unit Costs incremental Income from New Business Print References Contribution margin Incremental income (loss) from new business The company should

Answer 1

А BC Incremental Incremental Incremental Amount per Income from New Fixed Costs Unit Business 1 2 Sales $ 350 315000 3 Variable cost $ 175 157500 4 Contribution margin $ 175 157500 5 Fixed costs $ 48,000 $ 48,000 6 Incremental income (loss) from new business $ 109,500 7 The company should Accept the order

А в Incremental Incremental incremental Income Amount per Unit Fixed Costs from New Business 1 2 Sales 350 =+B2*900 3 Variable cost 175 =+B3*900 4 Contribution margin =+B2-B3 =+D2-D3 5 Fixed costs 48000 =+C5 6 Incremental income (loss) from new business =+D4-D5 7 The company should Accept the order