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Radar Company sells bikes for $460 each. The company currently sells 4,350 bikes per year and could make as many as 4,650 bikes per year.

Radar Company sells bikes for $460 each. The company currently sells 4,350 bikes per year and could make as many as 4,650 bikes per year. The bikes cost $265 each to make: $170 in variable costs per bike and $95 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 300 bikes for $450 each. Incremental fixed costs to make this order are $80 per bike. No other costs will change if this

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