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Radar Company sells bikes for $500 each. The company currently sells 4,300 bikes per year and could make as many as 4,670 bikes per year.

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Radar Company sells bikes for $500 each. The company currently sells 4,300 bikes per year and could make as many as 4,670 bikes per year. The, bikes cost $240 each to make: $160 in variable costs per bike and $80 of fixed costs per bike. Radar recelves an offer from a potential customer who wants to buy 370 bikes for $480 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

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