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Radar Company sells bikes for $500 each. The company currently sells...

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Accounting

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Radar Company sells bikes for $500 each. The company currently sells 4,250 bikes per year and could make as many as 4,630 bikes per year. The bikes cost $290 each to make: $165 in variable costs per bike and $125 of fixed costs per bike. Radar receives an offer. from a potential customer who wants to buy 380 bikes for $480 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

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