Further Decision ILO 7-7) sell or Pe Company produces sweaters under the "Scottie" label. The company buys it into wool yarn from which the sweaters are woven. One spindle of wool ce one sweater. The costs and revenues associated with the sweaters are Scottic Su The Sool and processes aw is required to produce The cost below Per Sweater Selling price Cost to manufacture: $30.00 Raw materials: Buttons, thread, lining Wool yarn. $2.00 16.00 Total raw materials.... Direct labor 18.00 5.80 8.70 32.50 Manufacturing profit (loss) $ (2.50) the wool yarn was used to produce sweaters, but in recent years a market has wool yarn itself. The yarn is purchased by other companies for use in production nkets and other wool products. Since the development of the market for the wool yarn, a dispute has existed in the Scottie Sweater Company as to whether the yarn should be sold ocessed into sweaters. Current cost and revenue data on the yarn are given below: Originally, all of for the developed n s simply as yarn or