Question: Radar Company sells bikes for 300 each The company
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.
Relevant QuestionsA guitar manufacturer is considering eliminating its electric guitar division because its $ 76,000 expenses are higher than its $ 72,000 sales. The company reports the following expenses for this division. Should the ...B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $ 360,000 with a 6-year life and no salvage value. It will be depreciated on a ...Suresh Co. expects its five departments to yield the following income for next year.Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following ...Cortino Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $ 300,000 cost with an expected four- year life and a $ 20,000 salvage value. All sales ...Read the chapter opener about Charlie Fyffe and his company, Charlie’s Brownies. Suppose Charlie’s business grows and he considers building a new, massive bakery and warehousing center to make his business more efficient ...
Post your question