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

Radar Company sells bikes for $550 each. The company currently sells 4,150 bikes per year and could make as many as 4,500 bikes
per year. The bikes cost $290 each to make: $200 in variable costs per bike and $90 of fixed costs per bike. Radar receives an offer
from a potential customer who wants to buy 350 bikes for $530 each. Incremental fixed costs to make this order are $80 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?
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