Calculate the total relevant cost. Do you agree with the president$$s conclusion?

O Homework (elgo) _D 6-1. 6-2. 6-3. 6-4. 6-5 222 Gbson Bl;cle Manufacturlng Comp,yny cwrenty procu:es tie hardlebars used In manjfactwlng Its blcycles. whlch are hlgh-auallty raclng bkes wlth Imltec salee GDscn grocu:es end sells only 31kes eech year Dl_e to tre Imu volJme of actlvl:y GDson Is IJnabe tc obtaln the ecoromles of scale tht producers a:hleve For earnple. Glbson COLId buy the handlebts for $37 ecr: :he,' cost $40 each to make Tie follouulng Is a detalled breakdann of clJrrent otodlJct10"l coste Total co Cuerneac allocated fac: i Tot 31 71,'B 21, 85, A'ter seelng trese figi_res. 3bson's presldent remarked that It would be foollsh for the company to contlnue to produce the handle3ar3 at $40 each when It buy them fo' $37 eacm Requlred Clculate the tual relennt cost Do you egree wl:h the oresldents concluslon? cost