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QS 23-20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $490 each. The company currently sells 4,050 bikes per year and could

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QS 23-20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $490 each. The company currently sells 4,050 bikes per year and could make as many as 4,370 bikes per year. The bikes cost $300 each to make: $190 in variable costs per bike and $110 of fixed costs per bike. Radat receives an offer from a potential customer who wants to buy 320 bikes for $460 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

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