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Fanning Company makes fine jewelry that it sells to department stores throughout the United States. Fanning is trying to decide which of the two bracelets
Fanning Company makes fine jewelry that it sells to department stores throughout the United States. Fanning 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 $ 35 37 8,500 5,400 Bracelet B $ 44 37 6,200 5,900 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. Required A Required B Required C Identify the fixed costs and determine the amount of fixed cost for each product. Fixed Costs Bracelet A Bracelet B Total fixed costs Complete this question by entering your answers in the tabs below. Required A Required B Required C Identify the avoidable costs and determine the amount of avoidable cost for each product. ... Avoidable Costs Bracelet A Bracelet B
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