Help Save & Exit S Exercise 13-10 Outsourcing decision LO 13-3 Check my w Campbell Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high- quality racing bikes with limited sales, Campbell produces and sells only 6.200 bikes each year. Due to the low volume of activity. Campbell is unable to obtain the economies of scale that larger producers achieve. For example, Campbell could buy the handlebars for $36 each, they cost $39 each to make. The following is a detailed breakdown of current production costs: Unit Cost Total $14 Item Unit-level costs Materials Labor Overhead Allocated facility-level costs Total $ 86,800 68,200 12,400 74,400 $241,820 After seeing these figures, Campbell's president remarked that it would be foolish for the company to continue to produce the handlebars at $39 each when it can buy them for $36 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? ou e PHILIPS vvel eu Check Allocated facility-level costs Total 200 74,400 $241,820 After seeing these figures, Campbell's president remarked that it would be foolish for the company to continue to produce the handlebars at $39 each when it can buy them for $36 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Total Per Unit Total relevant cost Do you agree with the president's conclusion? PHILIPS