Radar Company sells bikes for $450 each. The company currently sells 3,950 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $235 each to make: $195 in variable costs per bike and $40 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 875 bikes for $390 each. Incremental fixed costs to make this order are $44,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order.

	Incremental Amount per Unit	Incremental Fixed Costs	Incremental Income from New Business
Sales	$390
Variable cost	195
Contribution margin	$195
Fixed costs
Incremental income (loss) from new business
The company should