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Radar Company sells bikes for $ 4 5 0 each. The company currently sells 4 , 2 0 0 bikes per year and could make

Radar Company sells bikes for $450 each. The company currently sells 4,200 bikes per year and could make as many as 4,550 bikes per year. The bikes cost $270 each to make: $190 in variable costs per bike and $80 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 350 bikes for $430 each. Incremental fixed costs to make this order are $90 per bike. No other costs will change if this order is accepted.
(a) Compute the income for the special offer.
(b) Should Radar accept this offer?
Answer is complete but not entirely correct.
\table[[(a) Special offer analysis,,Per Unit,,Total],[Sales,(V),430,$,150,000
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