Boyle Company makes fine jewelry that it sells to department stores throughout the United States. Boyle 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 $ 10 $ 20 Cost of labor per unit 15 15 Advertising cost per year 5,000 3,000 Annual depreciation on existing equipment 5,000 4,000 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.

Explanation:

a)

Fixed Costs of Bracelet A

Advertising Costs   5,000$                                      

Annual depreciation 5,000$                                      

Total Fixed Costs   10,000$                

Fixed Costs for Bracelet B

Advertising Costs   3,000

Annual depreciation 4,000

Total Fixed Costs $ 7,000        

b)

Variable Costs for Bracelet A

Cost of Materials per unit$ 10                                            

Cost of labor per unit$ 15

Total Variable Costs per unit $25

Variable Costs for Bracelet B

Cost of Materials per unit$20

Cost of labor per unit$15

Total Variable Costs per unit $35                          

c) Avoidable costs

Avoidable CostsBracelet A

Cost of Materials per unit$10

Cost of labor per unit$ 15

Avoidable Costs Bracelet B

Cost of Materials per unit $20

Cost of labor per unit $15

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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