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please answer this with clearly, thank you 1. The Bike Company has a special line of mountain bikes, for which 5000 handlebars are required annually.

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1. The Bike Company has a special line of mountain bikes, for which 5000 handlebars are required annually. They can be purchased for S30 per unit or produced internally. The production cost is $20 per unit, and the production rate is 20.000 units per year. Set-up cost is S110, whereas issuing a purchase order costs $25. Inventory holding cost is 25 percent per annum 245 INVENTORY: INDEPENDENT DEMAND SYSTEMS (a) Should the Bike Company make or buy the item, assuming no shortages are allowed? (b) Suppose shortages are allowed, with What should Bike do now? $7 per unit per year. $0.15 per unit, and f 1. The Bike Company has a special line of mountain bikes, for which 5000 handlebars are required annually. They can be purchased for S30 per unit or produced internally. The production cost is $20 per unit, and the production rate is 20.000 units per year. Set-up cost is S110, whereas issuing a purchase order costs $25. Inventory holding cost is 25 percent per annum 245 INVENTORY: INDEPENDENT DEMAND SYSTEMS (a) Should the Bike Company make or buy the item, assuming no shortages are allowed? (b) Suppose shortages are allowed, with What should Bike do now? $7 per unit per year. $0.15 per unit, and f

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