Which of the following statements regarding costs and decision making is correct? Per-unit fixed cost amounts are valid only for make-or-buy decisions. Fixed costs must be considered only on a per-unit basis. Sunk costs can be misleading in make-or-buy decisions because these amounts appear to be relevant differential costs. Per-unit fixed costs can be misleading because such amounts appear to behave as variable costs when, in actuality, the amounts are related to fixed expenditures. Opportunity costs should be ignored when evaluating decision alternatives.

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 activity, steele is unable to obtain the economies of scale that larger producers achieve. for example, steele 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, 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. calculate the total relevant cost. do you agree with the president's conclusion?