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Identify the avoidable costs

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Reference no: EM132466015

Question 1: Identify the fixed costs and determine the amount of fixed cost for each product

Question 2: Identify the variable costs and determine the amount of variable cost per unit for each product

Question 3: Identify the avoidable costs and determine the amount of avoidable cost for each product.

Benson Company makes fine jewelry that it sells to department stores throughout the United States. Benson is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow:

 

Bracelet A

Bracelet B

Cost of materials per unit

$      35

$    50

Cost of labor per unit

49

49

Advertising cost per year

9,600

7,000

Annual depreciation on existing equipment

5,100

5,000

Reference no: EM132466015

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