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2 7 Radar Company sells bikes for $ 5 1 0 each. The company currently sells 4 , 0 5 0 bikes per year and

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Radar Company sells bikes for $510 each. The company currently sells 4,050 bikes per year and could make as many as 4,380 bikes per year. The bikes cost $230 each to make: $195 in variable costs per bike and $35 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 330 bikes for $500 each. Incremental fixed costs to make this order are $90 per bike. No other costs will change if this order is accepted.
(a) Compute the income for the special offer.
(b) Should Radar accept this offer?
\table[[(a) Special offer analysis,Per Unit,Total],[,,],[,,],[Contribution margin,,],[,,],[Income,,],[,,]]
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