Walton Company makes fine jewelry that it sells to department stores throughout the United States....
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Accounting
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
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
Answer & Explanation
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