Radar Company sells bikes for $470 each. The company currently sells 4,150 bikes per year and could make as many as 4,470 bikes per year. The bikes cost $270 each to make: $190 in variable costs per bike and $80 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 320 bikes for $440 each. Incremental fixed costs to make this order are $41,000. No other costs will change if this order is accepted.

Compute Radar’s additional income (ignore taxes) if it accepts this order.

Answer rating: 100% (QA)

Income Selhing yeer H150X 470 S I Sells per 950 Cost ... View the full answer