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Radar Company sells bikes for $ 5 4 0 each. The company currently sells 4 , 3 0 0 bikes per year and could make

Radar Company sells bikes for $540 each. The company currently sells 4,300 bikes per year and could make as many as 4,660 bikes per year. The bikes cost $260 each to make: $195 in variable costs per bike and $65 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 360 bikes for $510 each. Incremental fixed costs to make this order are $49,000. 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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