QS 23-20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $520 each. The company currently sells 4,250 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $280 each to make: $190 in variable costs per bike and $90 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 330 bikes 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? (a) Special offer analysis Sales Variable costs Contribution margin Fixed costs (incremental) Income Per Unit Total 0 (b) The company should