Exercise 6-10A (Algo) Outsourcing decision LO 6-3 Thornton Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Thornton produces and sells only 6,900 bikes each year. Due to the low volume of activity. Thornton is unable to obtain the economies of scale that larger producers achieve. For example, Thornton could buy the handlebars for $36 each they cost $39 each to make. The following is a detailled breakdown of current production costs. Unit Cost Total Unit-level coats Materials 016 $110,400 Labor Overhead i 11 75,900 2 13,000 Allocated facility-level costs 10 69,000 Total 839 $269,100 After seeing these figures, Thornton's president remarked that it would be foolish for the company to continue to produce the handlebars at $39 each when it can buy them for $36 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?