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I need help. a professor in accounting should answer this please. Answer in table form ONLY. Stuart Bicycle Manufacturing Company currently produces the handlebars used
I need help. a professor in accounting should answer this please. Answer in table form ONLY.
Stuart Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Stuart produces and sells only 7,200 bikes each year. Due to the low volume of activity, Stuart is unable to obtain the economies of scale that larger producers achieve. For example, Stuart could buy the handlebars for $38 each; they cost $41 each to make. The following is a detailed breakdown of current production costs Unit Cost Total Item Unit-level costs Materials Labor Overhead $14 $100,800 79,200 14,400 100,800 $295,200 Allocated facility-level costs Total 14 $41 After seeing these figures, Stuart's president remarked that it would be foolish for the company to continue to produce the handlebars at $41 each when it can buy them for $38 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 conclusionStep by Step Solution
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