QS 23-6 Additional business LO A1 Radar Company sells bikes for $420 each. The company currently sells 3,950 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $255 each to make: $195 in variable costs per bike and $60 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 875 bikes for $380 each. Incremental fixed costs to make this order are $43,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order.

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