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3 Graded Practice i Saved Radar Company sells bikes for $470 each. The company currently sells 4,050 bikes per year and could make as
3 Graded Practice i Saved Radar Company sells bikes for $470 each. The company currently sells 4,050 bikes per year and could make as many as 4,430 bikes per year. The bikes cost $260 each to make: $195 in variable costs per bike and $65 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 380 bikes for $450 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? (a) Special offer analysis Per Unit Total Contribution margin Income (b) The company should 0 Help Save & Exit Submit Prev 7 of 7 Next > Focus E =1 188 words English (United States) Check my work
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