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Radar Company sells bikes for $540 each. The company currently sells 4400 bikes per year and could make as many as 4700 bikes per year.
Radar Company sells bikes for $540 each. The company currently sells 4400 bikes per year and could make as many as 4700 bikes per year. The bikes cost $260 each to make: $165 in variable costs per bike and $95 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 300 bikes for $520 each. Incremental fixed costs to make this order are $60 per bike. No other costs will change if this order is accepted (s) Compute the income for the special offer (b) Should Radar accept this offer? (*) Special offer analysis Per Unit Total Sales $ 520 Coro ed costs comental) Income (b) The company has ce speciale
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