Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,690 bikes per year. The bikes cost $265 each to make: $160 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 390 bikes for $460 each. Incremental fixed costs to make this order are $42,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order.

Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,690 bikes per year. The bikes cost $265 each to make: $160 in variable costs per bike and $105 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 390 bikes for $460 each. Incremental fixed costs to make this order are $42,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Amount per Unit Incremental Fixed Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should