Question

3 parts to question

Exercise 13-3 Distinction between avoidable costs and cost behavior LO 13-1 Franklin Company makes fine jewelry that it sells to department stores throughout the United States. Franklin is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow Bracelet B $ 51 Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Bracelet A $ 40 35 9,500 6,100 6,800 5,100 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 Bracelet A Bracelets Total faced costs Required Required B >

Answer 1

Bracelet $ 9500 | Bracelet B $ 6800 Any: A) fixed Costs Advertising cost per year Annual Depreciation on existing - equipment Total fixed Cost $ 6100 | $5100 $15.00 $11900 BUD Bracelet $40 A Bracelet B $51 Variable costs Cost of materials per Chit Cost of labor per anit $35 $35 Total Variable Costs fer (mit 475 $86 Bracelet $40 a Bracelet B 851 1 Avoidable costs Cost of material Advertising Cost fer year $ 9500 $6800