QS $23-20($Algo$)$ Special offer pricing LO P$7$

Radar Company sells bikes for $$500$ each. The company currently sells $4,350$ bikes per year and could make as many

as $4,670$ bikes per year. The bikes cost $$280$ each to make: $$170$ in variable costs per bike and $$110$ of fixed costs per

bike. Radar receives an offer from a potential customer who wants to buy $320$ bikes for $$470$ each. Incremental fixed

costs to make this order are $$100$ 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?