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In: Accounting

Rundle Company makes fine jewelry that it sells to department stores throughout the United States. Rundle...

Rundle Company makes fine jewelry that it sells to department stores throughout the United States. Rundle 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 $ 25 $ 49
Cost of labor per unit 38 38
Advertising cost per year 8,100 6,400
Annual depreciation on existing equipment 6,300 4,700

Required

  1. Identify the fixed costs and determine the amount of fixed cost for each product.

  2. Identify the variable costs and determine the amount of variable cost per unit for each product.

  3. Identify the avoidable costs and determine the amount of avoidable cost for each product.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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