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Problem: Module 6 Textbook Problem 1 Learning Objective: 6-1 Identify the characteristics of relevant information Zachary Company makes fine jewelry that it sells to
Problem: Module 6 Textbook Problem 1 Learning Objective: 6-1 Identify the characteristics of relevant information Zachary Company makes fine jewelry that it sells to department stores throughout the United States. Zachary is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow. Cost of materials per unit Bracelet A $ 26 Cost of labor per unit Advertising cost per year 33 Bracelet B $ 33 33 Annual depreciation on existing equipment 8,800 6,800 7,900 5,000 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. 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 variable costs and determine the amount of variable cost per unit for each product. Variable Costs Bracelet A Bracelet B Total variable costs per unit Identify the variable costs and determine the amount of variable cost per unit for each product. Variable Costs Total variable costs per unit Bracelet A Bracelet B Identify the avoidable costs and determine the amount of avoidable cost for each product. Avoidable Costs Bracelet A Bracelet B
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