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Radar Company sells bikes for $500 each. The company currently sells 4,100 bikes per year and could make as many as 4.430 bikes per year.

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Radar Company sells bikes for $500 each. The company currently sells 4,100 bikes per year and could make as many as 4.430 bikes per year. The bikes cost $275 each to make: $165 in variable costs per bike and $110 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 330 bikes for $180 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 (gnore taxes) if it accepts this order, Incremental incremental Amount per Fixed Unit Costs Incremental Income from New Business Contribution margin Increm income (oss) from new business The company should

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