Medallion Company makes fine jewelry that it sells to department stores througho

Question

Medallion Company makes fine jewelry that it sells to department stores throughout the United States. Medallion is trying to decide which of two bracelets to manufacture. Cost data pertaining to the two choices follow. Required: Identify the fixed costs and determine the amount of fixed cost for each product. (Omit the "$" sign in your response. ) Identify the variable costs and determine the amount of variable cost per unit for each product. (Omit the "$" sign in your response. ) Identify the avoidable costs and determine the amount of avoidable cost for each product. (Omit the "$" sign in your response. )

Explanation / Answer

a)

Bracelet A --- 8200 + 5300 = 13500

Bracelet B --- 7500 + 4500 = 12000

b)

Bracelet A -- 34 + 50 = 84

Bracelet B -- 36 + 50 = 86

c)

Bracelet A its 8200

Bracelet B its 7500

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