Exercise 13-4 (Algo) Special Order Decision [LO13-4)

Exercise 13.4 (Algo) Special Order Decision [LO13.4] Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $264.00 as shown betow: The members of a wedding party have approached imperial Jewelers obout buying 18 of these gold bracelets for the discounted price of $36800 each. The members of the wedding party would like special figigee applied to the bracelets that would increase the direct. materials cost per bracelet by S1t. imperial Jewelers would also have to buy a special tool for 5452 to apply the fiigree to the bracelets. The special tool would have no other use once the special order is completed To analyze this speciai order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by varations in how much jewelry is produced in any given period. Howevec, $12.00 or the overhead is varable with respect to the number of bracelets prodiced. The company also believes that accepting this order would have no effect on th abinty to produce and seil jeweiry to other customers Furthermore, the compary could fulilil the wedding party's order using its existing manufocturing capacity Required: 1. What is the financial advantaqe idisadvantagel of accepting the special order from the wedding paitv? Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special 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? Required: 1. What is the financial advantage (disadvantage) of accepting the special 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