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Radar Company sells bikes for $ 4 9 0 each. The company currently sells 4 , 2 5 0 bikes per year and could make

Radar Company sells bikes for $490 each. The company currently sells 4,250 bikes per year and could make as many as 4,620 bikes per year. The bikes cost $260 each to make: $150 in varlable costs per bike and $110 of fixed costs per bike. Radar recelves an offer from a potential customer who wants to buy 370 bikes for $480 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?
\table[[(a) Special offer analysis,Per Unit,Total],[,,],[,,],[Contribution margin,,],[,,],[Income,,],[,,],[(b) The company should,,]]
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