Radar Company sells bikes for $450 each.
The company currently sells 4,750 bikes per year and could make as many as 5,000 bikes per year.
The bikes cost $225 each to make: $185 in variable costs per bike and $40 of fixed costs per bike.
Radar received an offer from a potential customer who wants to buy 850 bikes for $400 each.
Incremental fixed costs to make this order are $44,000.
No other costs will