Further Pedal Bikes sells unassembled bicycles. Recently, the firm contemplated switching to production of fully assembled bikes but it determined the net income per unit for the assembled bikes would be $25 lower than that for the unussembled bikes. Shortly after reaching this conclusion, Pedal discovered it underestimated its fixed production costs for the unassembled bikes by $20 and overestimated its variable production costs for the assembled bikes by $10. Given these corrected estimates Pedal should switch to selling assembled bikes. Pedal should continue selling unassembled bikes. It makes no difference which type of bike Pedal chooses to sell, it cannot be determined which type of bike Pedat should sell
