QS 23-20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $500 each. The company currently sells 4,400 bikes per year and could make as many as 4,760 bikes per year. The bikes cost $245 each to make: $150 in variable costs per bike and $95 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 360 bikes for $490 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? (a) Special offer analysis Per Unit Total S 490 $ 176,400 150 54,000 Sales Variable costs Contribution margin Fixed costs (incremental) $ 80 Income 80 (b) The company should