Radar Company sells bikes for $540 each. The company currently sells 4,500 bikes per year and...

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Radar Company sells bikes for $540 each. The company currently sells 4,500 bikes per year and could make as many as 4,840 bikes per year. The bikes cost $280 each to make: $190 in variable costs per bike and $90 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $520 each. Incremental fixed costs to make this order are $100 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? (a) Special offer analysis Sales Variable costs Per Unit Total $ 520 190 Contribution margin $ 330 Fixed costs (incremental) Income 3:30 inces (b) The company should Accept special offer Radar Company sells bikes for $540 each. The company currently sells 4,500 bikes per year and could make as many as 4,840 bikes per year. The bikes cost $280 each to make: $190 in variable costs per bike and $90 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $520 each. Incremental fixed costs to make this order are $100 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? (a) Special offer analysis Sales Variable costs Per Unit Total $ 520 190 Contribution margin $ 330 Fixed costs (incremental) Income 3:30 inces (b) The company should Accept special offer