Good morning, I need help with a problem please, and thank you.

Nowadays, Imagine Bicycle Manufacturing Corporation manufactures the handlebars used in the construction of its high-end racing bicycles, which have a modest sales volume. Imagine making and selling 7,600 bikes annually. Imagine is unable to benefit from the economies of scale that larger producers enjoy because of the limited volume of activity. For instance, the handlebars cost $38 apiece to construct; Imagine could get them for $35 each. The cost breakdown for current production is provided below. I

Item Unit Cost Total

Unit-level costs

Materials $17 $129,200

Labor 11 83,600

Overhead 2 15,200

Allocated facility-level costs 8 60,800

Total $ 38 $288,800

After seeing these figures, Imagines president remarked that it would be foolish for the company to continue to produce the handlebars at $38 each when it can buy them for $35 each.

Required

Calculate the total relevant cost. Do you agree with the presidents conclusion? per unit total Total relevant cost Do you agree with yes or no the president's conclusion?

Per Unit Total

Total relevant cost

Do you agree with the president conclusion? yes or no