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QS 23-6 Additional business LO A1 Radar Company sells bikes for $460 each. The company currently sells 3,900 blkes per year and could make as

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QS 23-6 Additional business LO A1 Radar Company sells bikes for $460 each. The company currently sells 3,900 blkes per year and could make as many as 5,000 bikes per year. The blkes cost $265 each to make: $165 In varlable costs per blke and $100 of fixed costs per blke. Radar recelved an offer from a potential customer who wants to buy 875 blkes for $420 each. Incremental fixed costs to make this order are $50,000. No other costs will change if this order is accepted. Compute Radars additional Income (ignore taxes) If it accepts this order Incremental Incremental Incremental Amount per Unit Fixed Costs Income from New Business Contribution margin Incremental income (loss) from new business The company should

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