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Radar Company sells bikes for $470 each. The company currently sells 4,050 bikes per year and could make as many as 4,440 bikes per
Radar Company sells bikes for $470 each. The company currently sells 4,050 bikes per year and could make as many as 4,440 bikes per year. The bikes cost $285 each to make: $185 in variable costs per bike and $100 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 390 bikes for $430 each. Incremental fixed costs to make this order are $100 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 Per Unit Total Contribution margin Income (b) The company should
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