Radar Company sells bikes for $510 each. The company currently sells 4,400 bikes per year and could make as many as 4,700 bikes per year. The bikes cost $290 each to make: $160 in variable costs per bike and $130 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 300 bikes for $470 each. Incremental fixed costs to make this order are $90 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 470 $ 160 Sales Variable costs Contribution margin Fixed costs (incremental) Income 141,000 48,000 93,000 $ 310 310 (b) The company should Accept special offer