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20 points Radar Company sells bikes for $480 each. The company currently sells 4,450 bikes per year and could make as many as 4,790 bikes
20 points Radar Company sells bikes for $480 each. The company currently sells 4,450 bikes per year and could make as many as 4,790 bikes per year. The bikes cost $285 each to make: $180 in variable costs per bike and $105 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $470 each. Incremental fixed costs to make this order are $80 per bike. No other costs will change if this order is accepted. eBook (a) Compute the income for the special offer. (b) Should Radar accept this offer? Hint (a) Special offer analysis Per Unit Incremental Fixed Costs Total Print Contribution margin References Income (b) The company should
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