With this information, management can determine that $15,000 of the fixed expenses associated with the housewares product line are avoidable and $13,000 are notTotal CostAssigned to NotFixed Expenses Housewares Avoidable* AvoidableSalaries $ 8,000 $ 8,000Advertising 6,500 6,500Utilities......... 1,000 $ 1,000Depreciation—fixtures 2,000 2,000Rent 4,000 4,000Insurance 500 500General administrative 6,000 6,000 Total $28,000 $13,000 $15,000
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