Adams Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Adams produces and sells only 7,200 bikes each year. Due to the low volume of activity, Adams is unable to obtain the economies of scale that larger producers achieve. For example, Adams could buy the handlebars for $31 each; they cost $34 each to make. The following is a detailed breakdown of current production costs. Item Unit Cost Total Unit-level costs Materials Labor Overhead Allocated facility-level costs Total $14 11 3 $100,800 79,200 21,600 43,200 $244,800 $34 After seeing these figures, Adams's president remarked that it would be foolish for the company to continue to produce the handlebars at $34 each when it can buy them for $31 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Per Unit Total Total relevant cost Do you agree with the president's conclusion