Homework Answers
Answer:
| Incremental Amount per Unit | Incremental Fixed Costs | Incremental Income from New Business | Calculation | |
| Sales | $340 | 2,89,000 | 340*850 | |
| Variable cost | 170 | 1,44,500 | 170*850 | |
| Contribution margin | $170 | 1,44,500 | 289000-144500 | |
| Fixed costs | 45000 | 45,000 | ||
| Incremental income (loss) from new business | 99,500 | |||
| The company should | Accept the order. | |||
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Radar Company sells bikes for $410 each. The company currently sells 4,900 bikes per year and...
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Marco mistakenly made 1,275 defective bikes. The bikes cost $61 each to make. A salvage company...
Marco mistakenly made 1,275 defective bikes. The bikes cost $61
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$146 each. No opportunity cost is associated with reworking the
bikes. What is the incremental net income from reworking the
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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...
Radar Company sells bikes for $410 each. The company currently sells 4,900 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $250 each to make: $185 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 875 bikes for $360 each. Incremental fixed costs to make this order are $40,000. No other costs will change if this order is...
Radar Company sells bikes for $410 each. The company currently sells 4,900 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $250 each to make: $185 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 875 bikes for $360 each. Incremental fixed costs to make this order are $40,000. No other costs will change if this order is...
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...
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Radar Company sells bikes for $380 each. The company currently sells 4,350 blkes per year and could make as many as 5,000 blkes per year. The bikes cost $240 each to make: $160 In varlable costs per blke and $80 of fixed costs per blke. Radar recelved an offer from a potential customer who wants to buy 850 blkes for $330 each. Incremental fixed costs to make this order are $44,000. No other costs will change If this order Is...
Marco mistakenly made 1,275 defective bikes. The bikes cost $61
each to make. A salvage company decided to purchase the defective
bikes as is for $32 each. It would cost Marco $84 per bike to
rework the bikes. If Marco rework the bikes, he could sell them for
$146 each. No opportunity cost is associated with reworking the
bikes. What is the incremental net income from reworking the
bikes.
Scrap Rework Sales Rework costs Total
2. Company manufactures and sells bikes. Each bike costs M R.O to make. The company's fixed costs are 500 R.O. In addition, the company owners know that the price of each bike comes from the price function p = 60 - (Note: M is the first two digit from your MEC ID after alphabetic (S or F), for example if the ID is 19F18140 take the two digit after F which are 18) 2. Company manufactures and sells bikes. Each...
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