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Grant's Company sells mopeds for $530 each. The company currently sells 4,200 mopeds per year and could make as many as 4,550 mopeds per year.

Grant's Company sells mopeds for $530 each. The company currently sells 4,200 mopeds per year and could make as many as 4,550 mopeds per year. The mopeds cost $275 each to make: $150 in variable costs per moped and $125 of fixed costs per moped. O'Brien received an offer from a potential customer who wants to buy 350 mopeds for $500 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted. Compute O'Briens additional income (ignore taxes) if it accepts this order.

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\begin{tabular}{|l|l|l|l|} & IncrementalAmountperUnit & IncrementalFixedCosts & IncrementalIncomefromNewBusiness \\ \hline & & & \\ \hline Contribution margin & & & \\ \hline & & \\ \hline Incremental income (loss) from new business & \\ \hline The company should \\ \hline \end{tabular}

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