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31. Austin Wool Products purchases row wool and processes it into yarn The spindles of yorn can then be sold dieectly to stores or they

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31. Austin Wool Products purchases row wool and processes it into yarn The spindles of yorn can then be sold dieectly to stores or they can be used by Autin Wool Products to make alghars Each alghan requires one spinde of yom Current cost d revenue data for the spindes of yom ond for-afghans are flow. Data for one spindle of yam: Selling price Variable production cost Fixed production cost (based on 4,000 spindles of yarn produced) $12 $8 $2 Data for one afghan: Selling price Production cost per spindle of yam Variable production cost to process the yarn into an afghan Avoidable fixed production cost to process the yarn into an afghan $32 $9 s5 (based on 4,000 afghans produced) Each month 4 000 spindles of yam are produced that can ether be sold outright or processed int What is the lowest pnice Austin should be willing to accest for one olghan s long s i can sell spuoies of yem to the ude market for $12 ch O $30 O $26 O $28 O s32 /14201 Type here to search

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