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Radar Company sells bikes for $ 5 1 0 each. The company currently sells 4 , 0 5 0 bikes per year and could make

Radar Company sells bikes for $510 each. The company currently sells 4,050 bikes per year and could make as many as 4,410 bikes per year. The bikes cost $270 each to make: $185 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 $490 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?
\table[[(a) Special offer analysis,Per Unit,Total],[Sales,,],[Variable costs,,],[Contribution margin,,],[Fixed costs (incremental),,],[Income,,],[,,],[(b) The company should,,]]
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