Radar company sells bikes for $490 each. the company currently sells 5,200 bikes per year and could make as many as 5,000 bikes per year. the bikes cost $285 each to make: $190 in variable costs per bike and $95 of fixed costs per bike. radar received an offer from a potential customer who wants to buy 875 bikes for $440 each. incremental fixed costs to make this order are $48,000. no other costs will change if this order is accepted.

compute radar’s additional income (ignore taxes) if it accepts this order.

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?