169k views
0 votes
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.

1 Answer

7 votes

Answer:

Please see attachment

Step-by-step explanation:

Please see attachment

Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per-example-1
Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per-example-2
User Huyz
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories