Exercise 11-4 (Algo) Special Order Decision [LO11-4] Imperlal Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says that the unlt product cost for this bracelet is $268.00 as shown below: The members of a wedding party have approached Imperlal Jewelers about buying 13 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like speclal fillgree applled to the bracelets that would Increase the direct materlals cost per bracelet by $14. Imperlal Jewelers would also have to buy a speclal tool for $462 to apply the fillgree to the bracelets. The speclal tool would have no other use once the speclal order is completed. To analyze this speclal order opportunity, Imperlal Jewelers has determined that most of Its manufacturing overhead is fixed and unaffected by varlations in how much jewelry is produced In any given perlod. However, $15.00 of the overhead is varlable with respect to the number of bracelets produced. The company also belleves that accepting this order would have no effect on Its ability to produce and sell Jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using Its existing manufacturing capacity. Requlred: 1. What Is the financlal advantage (disadvantage) of accepting the speclal order from the wedding party? 2. Should the company accept the speclal order? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Imperlal Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says that the unlt product cost for this bracelet is $268.00 as shown below: The members of a wedding party have approached Imperlal Jewelers about buying 13 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like speclal fillgree applled to the bracelets that would Increase the direct materlals cost per bracelet by $14. Imperlal Jewelers would also have to buy a speclal tool for $462 to apply the fillgree to the bracelets. The speclal tool would have no other use once the speclal order is completed. To analyze this special order opportunity, Imperlal Jewelers has determined that most of Its manufacturing overhead is fixed and unaffected by varlations in how much jewelry is produced In any given perlod. However, $15.00 of the overhead is varlable with respect to the number of bracelets produced. The company also belleves that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using Its existing manufacturing capacity. Requlred: 1. What is the financlal advantage (disadvantage) of accepting the speclal order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Should the company accept the special order
