Radar Company sells bikes for $ each. The company currently sells bikes per year and could make as many as bikes per year. The bikes cost $ each to make: $ in variable costs per bike and $ of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy bikes for $ each. Incremental fixed costs to make this order are $ 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?
tablea Special offer analysis,Per Unit,TotalContribution margin,,Incomeb The company should,,
