Baird Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high quality facing bikes with limited sales. Baird produces and sells only 7600 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 $42 each they cost $45 each to make. The following is a detailed breakdown of current production costs. Unit Cost Total Item Unit-level costs Materials Labor Overhead Allocated facility level costs Total $16 12 2 15 $45 $121,600 91,200 15,200 114,000 $342.000 After seeing these figures. Baird's president remarked that it would be foolish for the company to continue to produce the handlebars at $45 each when it can buy them for $42 each Required Calculate the total relevant cost. Do you agree with the president's conclusion? Total Per Unit Total televant cost Do you agree with the president's conclusion