$11$

The Bharu Violin Corporation has the capacity to manufacture and sell $5,000$ violins each year but is currently only manufacturing a

$80+05$:$20$

Selling price

Per Violin

Manufacturing costs:

$$600$

Variable

Fixed $ $$130$

Selling and administrative costs: $$270$

Variable

Fixed

$$20$

$$40$

Woolgar Symphony Orchestra is interested in purchasing Bharu's excess capacity of $200$ units but only if they can get the violins for

$($$$22,000)$

$($$$28,000)$

$($$$10,000)$

$$40,000$