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Radar Company sells bikes for $530 each. The company currently sells 4,150 bikes per year and could make as many as 4,450 bikes per year.

Radar Company sells bikes for $530 each. The company currently sells 4,150 bikes per year and could make as many as 4,450 bikes per year. The bikes cost $270 each to make: $180 in variable costs per bike and $90 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 300 bikes for $520 each. Incremental fixed costs to make this order are $49,000. No other costs will change if this order is accepted. Compute Radars additional income (ignore taxes) if it accepts this order.

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Incremental Incremental Amount per Fixed Unit Costs Incremental Income from New Business Contribution margin Incremental income (loss) from new business The company should

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