Help withCost accounting question that is attached below

Situation: Austin Wool Products purchases raw wool and processes it into spindles of yarn. Each month 4,000 spindles of yarn are produced. The spindles of yarn can then be sold directly to stores or they can be used by Austin Wool Products to make afghans. Each spindle of yarn sells for $12; variable costs are $8 to make a spindle of yarn, and fixed costs to make 4,000 spindles of yarn total $8,000. The yarn can also be used to make afghans. Each afghan sells for $32 and requires one and a quarter (1.25) spindles of yarn. Excluding the cost of yarn, variable costs to make an afghan from spindles of yarn is $9, and fixed costs to make afghans from spindles of yarn is $20,000. If the company chooses to make afghans, all yarn must be used; no yarn can be sold separately. Required: a. In order to maximize profits, should Austin sell the spindles of yarn or further process the yarn into afghans? How much operating income would Austin generate on a monthly basis by following your suggestion? (1 point) b. What is the lowest selling price Austin should be willing to accept for one afghan as long as they can sell spindles of yarn to the outside market for $12 each? (1 point situation The Pennsylvania Engine Company manufactures the identical small engine at two Pennsylvania plants, an older plant in Pottsville and a new plant in Harrisburg. Information for each of the plants for the current year is summarized below: Pottsville Harrisburg Selling price per engine $155.00 $155.00 Variable manufacturing cost per engine 91.00 75.00 Fixed manufacturing cost per engine 15.00 30.00 Variable marketing & distribution cost per engine 16.00 15.00 Fixed marketing & distribution cost per engine 13.00 16.00 Normal annual capacity (in engines) 76,800 96,000 Annual capacity with Overtime (in engines) 99,200 124,000 The above fixed and variable costs per engine are calculated based upon each plant operating at the normal annual capacity. Annual fixed costs at each plant remain constant as activity levels change and can only be eliminated through the complete shutdown of the plant. When the Pottsville plant operates above normal annual capacity, overtime costs increases the variable manufacturing cost by $5.00 and variable marketing & distribution cost by $2.00 for each additional engine produced. When the Harrisburg plant operates above normal annual capacity, overtime costs increases the variable manufacturing cost by $7.00 and variable marketing & distribution cost by $4.00 for each additional engine produced. Required: a. Calculate the contribution margin per engine at normal capacity and on overtime for the Pottsville and Harrisburg plants, individually. (1 point) b. Calculate total annual fixed costs for the Pottsville and Harrisburg plants, individually; then calculate the annual breakeven point in engines for each plant. (1 point) c. The Pennsylvania Engine Company is currently under contract to produce and sell 155,000 engines this year. How should the production be allocated between the Pottsville and Harrisburg plants to maximize the operating income of Pennsylvania Engine Company? Calculate Pennsylvania Engine Company's total operating income for the year under your proposed production allocation. (1 point)