QS $23-20($Algo$)$ Special offer pricing LO P$7$

Radar Company sells bikes for $$490$ each. The company currently sells $4,450$ bikes per year and could make as many as $4,800$ bikes per year. The bikes cost $$270$ each to make: $$160$ in variable costs per bike and $$110$ of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy $350$ bikes for $$450$ each. Incremental fixed costs to make this order are $$90$ 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?

$\backslash$table$[[($a$)$ Special offer analysis,Per Unit,Total$],[,,],[,,],[$Contribution margin,,$],[,,],[$Income$,,],[,,],[($b$)$ The company should,,$]]$