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Radar Company sells bikes for $480 each. The company currently sells 4,000 bikes per year and could make as many as 4.330 bikes per year.

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Radar Company sells bikes for $480 each. The company currently sells 4,000 bikes per year and could make as many as 4.330 bikes per year. The bikes cost $260 each to make: $165 in variable costs per bike and $95 of fixed costs per bike. Radar recelves an offer from a potential customer who wants to buy 330 bikes for $450 each. Incremental fixed costs to make this order are $70 per bike. No other costs will change If this order is accepted. (o) Compute the income for the special offer. (b) Should Radar accept this offer

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