Radar Company sells bikes for $$540$ each. The company currently sells $4,400$ bikes per year and could make as many as $4,760$ bikes per year. The bikes cost $$265$ each to make: $$195$ in variable costs per bike and $$70$ of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy $360$ bikes for $$510$ each. Incremental fixed costs to make this order are $$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?

a$)$ special offer analysis $|$ Per unit $|$ Total

sales: $||$

Variable costs: $||$

contribution margin: $||$

Fixed Costs$($Incremental$)||$

Income $||$

B$)$ They company should: