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Radar Company sells bikes for $ 4 7 0 each. The company currently sells 3 , 5 0 0 bikes per year and could make

Radar Company sells bikes for $470 each. The company currently sells 3,500 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $265 each to make: $180 in variable costs per bike and $85 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 1,000 bikes for $430 each. Incremental fixed costs to make this order are $48,000. No other costs will change if this order is accepted.
Compute Radar's additional income (ignore taxes) if it accepts this order.
\table[[Sales,\table[[Incremental],[Amount per],[Unit]],\table[[Incremental],[Fixed],[Costs]],\table[[Incremental],[Income from New],[Business]]],[430,$,430,000],[Variable cost,180,,,18,000],[Contribution margin,250,,,412,000],[Fixed costs,,$48,000,,(48,000)
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