Exercise 13-10A (Algo) Outsourcing decision LO 13-3 Adams Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which ore high-quality racing bikes with limited sales. Adams produces and sells only 6,600 bikes each year. Due to the iow volume of activity. Adams is unable to obtain the economies of scale that larger producers achieve. For example, Adams could buy the handlebars for $32 each; they cost $35 each to make. The following is a detailed breakdown of current production costs After seeing these figures, Adams's president remarked that it would be foolish for the company to continue to produce the handlebars at $35 each when it can buy them for $32 each. Required Caiculate the total relevant cost. Do you agree with the president's conclusion