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Radar Company sells bikes for $460 each. The company currently sells 5,450 bikes per year and could make as many as 5,000 bikes per year.

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Radar Company sells bikes for $460 each. The company currently sells 5,450 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $250 each to make: $160 in variable costs per bike and $90 of foxed costs per bike. Radar received an offer from a potential customer who wants to buy 850 bikes for $420 each Incremental foxed costs to makee this order are $45,000 No other costs will change if this order is accepted Compute Radar's additional income (gnore taxes) if it accepts this order Incremental Amount per Incremental Incremental Income from New Business Fixed Unit Costs IContribution margin Incremental income (loss) from new business The company should Prey 1 of 4 Nexl X23 lenovo d + End F9 + F10 F11 F12 Home F8 - F6 F7 FS F2 F3 F4 14 % # 7 2 4 5 P U Y T R W L K J D S F V C X B A V *CO o N T CG LL

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