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Question: Radar Company sells bikes for $300 each. The company currently sells 3, 750 bikes per year and co…
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Question: Radar Company sells bikes for $300 each. The <a href=company currently sells 3, 750 bikes per year and co…” />

Show transcribed image text 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.

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.

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