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QS 2 3 - 2 0 ( Algo ) Special offer pricing LO P 7 1 points References Radar Company sells bikes for $ 5
QS Algo Special offer pricing LO P
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Radar Company sells bikes for $ each. The company currently sells bikes per year and could make as many as bikes per year. The bikes cost $ each to make: $ in variable costs per bike and $ of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy bikes for $ each. Incremental fixed costs to make this order are $ 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?
tablea Special offer analysis,Per Unit,TotalSales$$Variable costs,,Contribution margin,$Fixed costs incrementalIncome b The company should,,,,
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