LO 6-1 Exercise 6-3B Distinction between avoidable costs and cost behavior Ender Phones Inc. makes telephones that it sells to department stores throughout the United States. Ender is trying to decide which of two telephone models to manufacture. The company could produce either telephone with its existing machinery. Cost data pertaining to the two choices follow. Model 90 Model 30 Materials cost per unit $ 25.00 $ 25.00 Labor cost per unit 27.50 15.00 Product design cost 12,000.00 7,000.00 Depreciation on existing manufacturing machinery 3,000.00 3,000.00 Required a. Identify the fixed costs and determine the amount of fixed cost for each model. b. Identify the variable costs and determine the amount of variable cost for each model. c. Identify the avoidable costs. Page 294