3 Exercise 6-10A (Algo) Outsourcing decision LO 6-3 Rundle Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Rundle produces and sells only 7,100 bikes each year. Due to the low volume of activity, Rundle is unable to obtain the economies of scale that larger producers achieve. For example, Rundle could buy the handlebars for $35 each; they cost $38 each to make. The following is a detailed breakdown of current production costs. 4 points eBook Unit Cost Item Total Ask Unit-level costs $ 99,400 78,100 14,200 Materials $14 References Labor 11 Overhead 2 Allocated facility-level costs 11 78,100 $38 $269,800 Total After seeing these figures, Rundle's president remarked that it would be foolish for the company to continue to produce the handlebars at $38 each when it can buy them for $35 each Required Calculate the total relevant cost. Do you agree with the president's conclusion? Total Per Unit Total relevant cost Do you agree with the president's conclusion