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HELP ASAP Radar Company sells bikes for $520 each. The company currently sells 4,250 bikes per year and could make as many as 4,630 bikes
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Radar Company sells bikes for $520 each. The company currently sells 4,250 bikes per year and could make as many as 4,630 bikes per year. The bikes cost $245 each to make: $160 in variable costs per bike and $85 of fixed costs per blke. Radar recelves an offer from a potential customer who wants to buy 380 blikes for $500 each. Incremental fixed costs to make this order are $80 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 Step by Step Solution
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