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Radar Company sells bikes for $ 4 9 0 each. The company currently sells 4 , 2 0 0 bikes per year and could make

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Radar Company sells bikes for $490 each. The company currently sells 4,200 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $255 each to make: $190 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $460 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted.
Compute Radar's additional income (ignore taxes) if it accepts this order.
\table[[,\table[[Incremental],[Amount per],[Unit]],\table[[Incremental],[Fixed],[Costs]],\table[[Incremental],[Income from New],[Business]]],[,,,],[,,,],[Contribution margin,,,],[,,,],[Incremental income (loss) from new business,,,],[The company should,,]]
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