Question
Campus Jewels selling bracelets for $120. The product cost per unit for the recent year is shown below. $60 for direct materials $30 for direct
Campus Jewels selling bracelets for $120. The product cost per unit for the recent year is shown below.
$60 for direct materials
$30 for direct labor
$13 for manufacturing overhead (40% variable)
A sorority requests 40 custom bracelet at $105 sales price with a custom logo. The logo requires a special tool costing $260. This order will not impact other customer orders and there is plenty of capacity to produce these without impacting other production needs. What is the financial advantage (disadvantage) of accepting this order? Report as a whole number with disadvantage as a negative.
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