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5 0.62 Radar Company sells bikes for $520 each. The company currently sells 4,000 bikes per year and could make as many as 4,310 bikes

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5 0.62 Radar Company sells bikes for $520 each. The company currently sells 4,000 bikes per year and could make as many as 4,310 bikes per year. The bikes cost $285 each to make: $175 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 310 bikes for $500 each. Incremental fixed costs to make this order are $41,000. No other costs will change if this order is accepted. Compute Radar's additional income ignore taxes) if it accepts this order. points Answer is not complete Incremental Amount per Unit Incremental Fixed Costs Incremental Income from New Business s 155,000 54,250 Sales S 500 Variable cost 175 Contribution margin Fixed costs Incremental income (loss) from new business The company should 41,0 41,000

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