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Radar Company sells bikes for $ 4 7 0 each. The company currently sells 4 , 0 5 0 bikes per year and could make

Radar Company sells bikes for $470 each. The company currently sells 4,050 bikes per year and could make as many as 4,360 bikes per year. The bikes cost $265 each to make: $180 in variable costs per bike and $85 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 310 bikes for $460 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?

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