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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 accepted.

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Answer:

Please see attachment

Step-by-step explanation:

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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
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