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Walton Company makes fine jewelry that it sells to department stores throughout the United States. Walton is trying to decide which of the two bracelets

Walton Company makes fine jewelry that it sells to department stores throughout the United States. Walton is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow.

Bracelet A Bracelet B
Cost of materials per unit $ 32 $ 45
Cost of labor per unit 48 48
Advertising cost per year 9,800 6,600
Annual depreciation on existing equipment 7,000 5,400

Required

  1. 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 per unit

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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