Homework Answers
| Avoidable cost | = | $ 4,37,000 |
| Workings: | ||
| Computation of Avoidable cost: | ||
| Advertising Expense | = | $ 89,000 |
| Supervisory salaries | = | $ 1,66,000 |
| Market value of building | = | $ 89,000 |
| Maintenance cost on equipment | = | $ 86,000 |
| Real estate taxes on building | = | $ 7,000 |
| Avoidable cost | = | $ 4,37,000 |
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