Fanning Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high quality racing bikes with limited sales. Fanning produces and sells only 7.900 bikes each year. Due to the low volume of activity. Fanning is unable to obtain the economies of scale that larger producers achieve. For example, Fanning could buy the handlebars for $30 each: they cost $33 each to make. The following is a detailed breakdown of current production costs. Iten Unit Cost Total Unit-level costs Materials $110,600 Labor 71,100 Overhead 15,880 Allocated facility-level costs 63,200 $260,700 $14 9 2 8 $33 Total After seeing these figures. Fanning's president remarked that it would be foolish for the company to continue to produce the handlebars at $33 each when it can buy them for $30 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Total Per Unit Total relevant cost Do you agroo with the president's conclusion