answer in text form please (without image) E26-6 Top Gear Bikes could sell its bicycles to retailers either assembled or unassembled. Thecost of an unassembled bike is as follows.Direct materialsDirect laborVariable overhead (70% of direct labor)Fixed overhead (30% of direct labor)Manufacturing cost per unit$150704921$290The unassembled bikes are sold to retailers at $400 each.Top Gear currently has unused productive capacity that is expected to continue indefinitely;management has concluded that some of this capacity can be used to assemble the bikes and sellthem at $450 each. Assembling the bikes will increase direct materials by $5 per bike, and directlabor by $20 per bike. Additional variable overhead will be incurred at the normal rates, butthere will be no additional fixed overhead as a result of assembling the bikes.Instructions(a) Prepare an incremental analysis for the sell-or-process-further decision.(b) Should Top Gear sell or process further? Why or why not?

Name: answer in text form please (without image) E26-6 Top Gear Bikes could
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Description: answer in text form please (without image) E26-6 Top Gear Bikes could sell its bicycles to retailers either assembled or unassembled. Thecost of an unassembled bike is as follows.Direct materialsDirect laborVariable overhead (70% of direct labor)Fixe

Incremental analysis uses finanial information to make decisions . It can be applied to sell or…

Answered: materials labor le overhead (70% of…

Business

Accounting

materials labor le overhead (70% of direct labor) overhead (30% of direct labor) acturing cost per unit $ $2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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