Radar Company sells bikes for $530 each. The company currently sells 4,100 bikes per year and could make as many as 4,440 bikes per year. The bikes cost $260 each to make: $190 in variable costs per bike and $70 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $490 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? (a) Special offer analysis Per Unit Total Sales Variable costs 490 190 Contribution margin 300 Fixed costs (incremental) Income 300 (b) The company should Accept special offer