WoolCorp buys sheeps wool from farmers. The company began operations in January of this year and is making decisions on product offerings, pricing, and vendors. The company is also examining its method of assigning overhead to products. Youve just been hired as a production manager at WoolCorp.

Currently, WoolCorp makes three products: (1) raw, clean wool to be used as stuffing or insulation; (2) wool yarn for use in the textile industry, and (3) extra-thick yarn for use in rugs.

Upper management would like your recommendations regarding a production decision regarding their current and proposed product lines.

In your report, include the following:

1) Evaluate fixed and variable costs. Include the rationale for the categorization of these costs, and then explain why these costs were included in the differential anal

2) Construct explanations for the line items that demonstrate your expertise as a managerial accountant.

3) Explain the Robinson-Patman Act and how it influences decision-making within this industry.

4) Define additional variables managers should consider.