Please give very detailed instructions on how to solve the following question. Thank you.

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.

Fixed costs	Bracelet A	Bracelet B
Total Fixed costs

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