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Radar Company sells bikes for $460 each. The company currently sells 4,100 bikes per year and could make as many as 4,450 bikes 21 per
Radar Company sells bikes for $460 each. The company currently sells 4,100 bikes per year and could make as many as 4,450 bikes 21 per year. The bikes cost $290 each to make: $175 in variable costs per bike and $115 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 350 bikes for $440 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. 4 points (b) Should Radar accept this offer? 8 02:11:33 (a) Special offer analysis Per Unit Total Contribution margin Income (b) The company should
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