Question: Exercise 13-3A (Algo) Distinction between avoidable costs and cost behavior LO 13-1 Vernon Company makes fine jewelry that it sells to department stores throughout


Exercise 13-3A (Algo) Distinction between avoidable costs and cost behavior LO 13-1 Vernon Company makes fine jewelry that it sells to department stores throughout the United States. Vernon 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 $ 30 $ 35 Cost of labor per unit 48 48 Advertising cost per year 9,200 6,300 Annual depreciation on existing equipment 6,000 4,300 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 fixed costs and determine the amount of fixed cost for each product. Fixed Costs Bracelet A Bracelet B Total fixed costs < Required A Required B >
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