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QS 23-6 Additional business LO A1 Radar Company sells bikes for $400 each. The company currently sells 4,150 bikes per year and could make as
QS 23-6 Additional business LO A1 Radar Company sells bikes for $400 each. The company currently sells 4,150 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $270 each to make: $155 in variable costs per bike and $115 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 825 bikes for $370 each. Incremental fixed costs to make this order are $44,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Incremental Amount per Fixed Unit Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should
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