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Radar Company sells bikes for $460 each. The company currently sells 4,250 blkes per year and could make as many as 4,630 bikes per year.

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Radar Company sells bikes for $460 each. The company currently sells 4,250 blkes per year and could make as many as 4,630 bikes per year. The bikes cost $240 each to make: $200 in voriable costs per bike and $40 of fixed costs per bike. Rodar receives an offer from a potential customer who wonts to buy 380 bikes for $420 each. Incremental fixed costs to make this order are $100 per bike. No other costs will change if this order is occepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer

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