Radar Company sells bikes for $490 each. The company currently sells 4,400 bikes per year and could make as many as 4,750 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 350 bikes for $460 each. Incremental fixed costs to make this order are $47,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Sales Variable cost Contribution margin Fixed costs Incremental Amount per Unit $ $ 460 (195) 265 Incremental income (loss) from new business The company should Incremental Fixed Costs Incremental Income from New Business $ 161,000 Accept the order

Radar Company sells bikes for $490 each. The company currently sells 4,400 bikes per year and could make as many as 4,750 bikes per year. The bikes cost $235 each to make: $195 in variable costs per bike and $40 of fixed costs per bike. Radar recelved an offer from a potential customer who wants to buy 350 bikes for $460 each. Incremental fixed costs to make this order are $47,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order