4 Radar Company sells bikes for $470 each. The...
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Radar Company sells bikes for $470 each. The company currently sells 4,400 bikes per year and could make as many as 4,710 bikes per year. The bikes cost $235 each to make: $160 in variable costs per bike and $75 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 310 bikes for $460 each incremental fixed costs to make this order are $80 per bike. No other cosis 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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