erez Company makes fine jewelry that it sells to department stores throughout the United States. Perez is trying to decide which of he two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet A $ 27 44 9,900 Bracelet B. $ 45 44 6,300 Annual depreciation on existing equipment 6,200 5,400 Cost of materials per unit Cost of labor per unit Advertising cost per year Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product. question by entering your answers in the tabs below.
erez Company makes fine jewelry that it sells to department stores throughout the United States. Perez is trying to decide which of he two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet A $ 27 44 9,900 Bracelet B. $ 45 44 6,300 Annual depreciation on existing equipment 6,200 5,400 Cost of materials per unit Cost of labor per unit Advertising cost per year Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product. question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Perez Company makes fine jewelry that it sells to department stores throughout the United States. Perez is trying to decide which of
the two bracelets to manufacture. Cost data pertaining to the two choices follow.
Cost of materials per unit
Cost of labor per unit
Advertising cost per year
Annual depreciation on existing equipment
Bracelet A
$ 27
44
Bracelet B
$ 45
44
9,900
6,200
6,300
5,400
Required
a. Identify the fixed costs and determine the amount of fixed cost for each product.
b. Identify the variable costs and determine the amount of variable cost per unit for each product.
c. Identify the avoidable costs and determine the amount of avoidable cost for each product.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Identify the fixed costs and determine the amount of fixed cost for each product.
Fixed Costs
Total fixed costs
Bracelet A
Bracelet B
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