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Baird Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Baird produces and sells
Baird Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Baird produces and sells only 7,900 bikes each year. Due to the low volume of activity, Baird is unable to obtain the economies of scale that larger producers achieve. For example, Baird could buy the handlebars for $28 each; they cost $31 each to make. The following is a detailed breakdown of current production costs. Item Unit Cost Total Unit-le
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