Radar Company sells bikes for $$460$ each. The company currently sells $4,200$ bikes per year and could make as many as $4,590$ bikes per year. The bikes cost $$290$ each to make: $$185$ in variable costs per bike and $$105$ of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy $390$ bikes for $$430$ each. Incremental fixed costs to make this order are $$70$ 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?

$\backslash$table$[[($a$)$ Special offer analysis,Per Unit,Total$],[,,],[,,],[$Contribution margin,,$],[,,],[$Income$,,],[,,],[($b$)$ The company should,,$]]$

Prev

$6$ of $10$

Next