Question
I want to see the numbers because it is critical that I know how to solve the necessary calculations to get to the answers for
I want to see the numbers because it is critical that I know how to solve the necessary calculations to get to the answers for this problem. Since I have already posted this question previously and there were no calculations to show how the answers were arrived at, the solutions to the problem were of no value to me. Please, show the calculations for the solutions. Thank you for your help.
Lallone Company makes fine jewelry that it sells to department stores throughout the United States. Lallone is trying to decide which of two bracelets to manufacture. Cost data pertaining to the two choices follow. |
Bracelet A | Bracelet B | ||||||
Cost of materials per unit | $ | 16 | $ | 30 | |||
Cost of labor per unit | 32 | 32 | |||||
Advertising cost per year | 7,500 | 5,000 | |||||
Annual depreciation on existing equip. | 5,000 | 4,000 | |||||
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. |
Variable Costs | Bracelet A | Bracelet B |
Total variable costs |
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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