Exercise 6-10A outsourcing decision LO 6-3 Jordan Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Jordan produces and sells only 6,100 bikes each year. Due to the low volume of activity, Jordan is unable to obtain the economies of scale that larger producers achieve. For example, Jordan could buy the handlebars for $27 each; they cost $30 each to make. The following is a detailed breakdown of current production costs. Unit Cost Total Item Unit-level costs $13 79,300 Materials 54,900 Labor 12,200 Overhead Allocated facility-level costs 36,600 $30 $183,000 Total After seeing these figures, Jordan's president remarked that it would be foolish for the company to continue to produce the handlebars at $30 each when it can buy them for $27 each. Required: a. Calculate the total relevant cost. Total Total relevant cost