Radar Company sells bikes for $470 each. The company currently sells 4,050 bikes per year and could make as many as 4,390 bikes per year. The bikes cost $235 each to make: $170 in variable costs per bike and $65 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 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. (b) Should Radar accept this offer? (a) Special offer analysis Contribution margin Income (b) The company should Per Unit Total

Radar Company sells bikes for $470 each, The company currently sells 4,050 bikes per year and could make as many as 4,390 bikes per year. The bikes cost $235 each to make: $170 in variable costs per bike and $65 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 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. (b) Should Radar accept this offer