Perea Broycie Manufactuning Company currently produces the handiebars used in manufacturing its bicycles, which are high-quality tawng taikes with imited saies Perez produces and sells only 7500 bikes each year. Due to the low volume of activity. Perez is unable to utbiam the economies of scate that larger proclucers achieve. For exampie. Perez could buy the handlebars for $33 each; they cost \$st each to make the foliowing is a cetaied breakdown of curent production costs. Afre sening these figures ferey s presisent remarked that is would be foolish for the compary to continue to produce the handlebars at 5 in each atien it ean boy thein for 513 each