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Watcor Bicycle Manufacturng Company currently produces the handicbars used if manilfacturing its bicyctes, which ate hightiably racing tikes with imned sales. Watton produces and sells

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Watcor Bicycle Manufacturng Company currently produces the handicbars used if manilfacturing its bicyctes, which ate hightiably racing tikes with imned sales. Watton produces and sells only 7500 bwes each year. Due to the low volume of activity. Waiton is unable to obtan the economies of scale that larger producet ochieve. For example. Walton could buy bie haldiebais for 532 each they cont $35 esch to make. The folewno is a detaled breakdown of current production costs Aher seeng these foures. Watton's peesident remarked that it worild be focilish for the tampany to contirue to produce the hanckebers at 535 esch when it can bey them for 53 a each Requieed Calculate the tolal televant cont Do yoe sgree wer the iresittents conclusion

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