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QS 23.20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $550 each. The company currently sells 4,450 bikes per year and could

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QS 23.20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $550 each. The company currently sells 4,450 bikes per year and could make as many as 4,810 bikes per year. The bikes cost $295 each to make; $195 in variable costs per bike and $100 of fixed costs per bike. Radar recelves an offer from a potential customer who wants to buy 360 bikes for $540 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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