Steele Bicycle Manufacturing Company currently produces the handlebars used in manufacturing Its bicycles, which are high-quality racing bikes with limited sales. Steele produces and sells only 10,000 bikes each year. Due to the low volume of actlivity. Steele is unable to obtain the economles of scale that larger producers achleve. For example, Steele could buy the handlebars for $31 each; they cost $34 each to make. The following is a detalled breakdown of current production costs. After seelng these figures, Steele's president remarked that It would be foolish for the company to continue to produce the handlebars at $34 each when It can buy them for $31 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Omron Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 10,000 contalners follows. "One-third of these costs can be avolded by purchasing the contalners. Russo Contalner Company has offered to sell comparable contalners to Omron for $3.00 each. Required a. Calculate the total relevant cost. Should Omron continue to make the contalners? b. Omron could lease the space It currently uses in the manufacturing process. If leasing would produce $8,000 per month, calculate the total avoldable costs. Should Omron continue to make the containers