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Radar Company sells bikes for $510 each. The company currently sells 4,450 bikes per year...

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Accounting

Radar Company sells bikes for $510 each. The company currently sells 4,450 bikes per year and could make as many as 4,760 bikes
per year. The bikes cost $230 each to make: $190 in variable costs per bike and $40 of fixed costs per bike. Radar receives an offer
from a potential customer who wants to buy 310 bikes for $490 each. Incremental fixed costs to make this order are $70 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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