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Exercise 13-4 (Algo) Special Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says the unit product

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Exercise 13-4 (Algo) Special Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says the unit product cost for this bracelet is $268.00, as shown below. A wedding party thas approached imperial Jewelers about buying 25 gold bracelets for the discounted price of $36900 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $14. imperial Jewelers would have to buy a special tool for $453 to opply the filigree to the bracelets. The special tool would have no other use oncet the speciat order is completed To analyze this special order, imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $15.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes accepting this order would have no effect on its ability to produce and sell jeweiry to other curitomets furthermore, the company could fulfil the wedding party's order using existing manufacturing capacity. Riequired: 1 What is the financial advantoge (disadvantage) of accepting the wedding partys special order? 2. Strould the company accept the special order

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