Business, 20.05.2020 11:59 dbryrob9148

Radar Company sells bikes for $480 each. The company currently sells 4,000 bikes per year and could make as many as 4,370 bikes per year. The bikes cost $260 each to make: $160 in variable costs per bike and $100 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 370 bikes for $460 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted.

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

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Radar Company sells bikes for $480 each. The company currently sells 4,000 bikes per year and could...