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QS 23-6 Additional business LO A1 Radar Company sells bikes for $450 each. The company currently sells 3,800 bikes per year and could make as

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QS 23-6 Additional business LO A1 Radar Company sells bikes for $450 each. The company currently sells 3,800 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $260 each to make: $150 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 825 bikes for $400 each. Incremental fixed costs to make this order are $47000. No other costs will change if this order is accepted. Compute Radar's additional income(ignore taxes) If it accepts this order. l Incremental IncrementalI Amount per Fixed Costs Income from New Business Unit Sales Variable cost xed costs Incremental income (loss) from new business The company should

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