Radar Company sells bikes for $530 each. The company currently sells 4,200 bikes per year and could make as many as 4,590 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 390 bikes for $510 each. Incremental fixed costs to make this order are $60 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 Contribution margin Income (b) The company should Per Unit Total

Radar Company sells bikes for $530 each. The company currently sells 4,200 bikes per year and could make as many as 4,590 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 390 bikes for $510 each. Incremental fixed costs to make this order are $60 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