Thornton Bicycle Manufacturing Company currently produces the handlebars used in manufacturing

its bicycles, which are high$-$quality racing bikes with limited sales. Thornton produces and sells only

$7,300$ bikes each year. Due to the low volume of activity, Thornton is unable to obtain the economies

of scale that larger producers achieve. For example, Thornton could buy the handlebars for $$31$ each;

they cost $$34$ each to make. The following is a detailed breakdown of current production costs.

After seeing these figures, Thornton'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?