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Radar Company sells bikes for $460 each. The company currently sells 4,350 bikes per year and could make as mamy as 4 . Tto tikes
Radar Company sells bikes for $460 each. The company currently sells 4,350 bikes per year and could make as mamy as 4 . Tto tikes per year. The bikes cost $245 each to make: $160 in variable costs per bike and $85 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 $60 per bike Ne 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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