(Solved):Radar Company sells bikes for $450 each. The company currently sells 4,750 bikes per year and…

 

Question

Radar Company sells bikes for $450 each.

The company currently sells 4,750 bikes per year and could make as many as 5,000 bikes per year.

The bikes cost $225 each to make: $185 in variable costs per bike and $40 of fixed costs per bike.

Radar received an offer from a potential customer who wants to buy 850 bikes for $400 each.

Incremental fixed costs to make this order are $44,000.

No other costs will

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