(Solved):Continue Radar’s additional income (ignore taxes) if it accepts this order. Radar Company sells…

 

Question

Continue Radar’s additional income (ignore taxes) if it accepts this order. Radar Company sells bikes for $500 each. The company currently sells 4,900 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $295 each to make; $190 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 775 bikes

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