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Radar Company sells bikes for $460 each. The company currently sells 4.050 bikes per year and could make as many as 4.410 bikes per year.

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Radar Company sells bikes for $460 each. The company currently sells 4.050 bikes per year and could make as many as 4.410 bikes per year. The bikes cost $235 each to make: $190 in variable costs per bike and $45 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 360 bikes for $430 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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