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 that the unit product cost for this bracelet is $259.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $141 87 31 $259 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $450 to apply the filigree to the bracelets. Imperial Jewelers has determined that $6.00 of the manufacturing overhead is variable with respect to the number of bracelets produced. 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?

Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet is $259.00 as shown below: The members of a wedding party have approached imperiol Jewelers about buying 29 of these gold bracelets for the discounted price of $369.00 each. The members of the wedding party would like special fisigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $450 to apply the filigree to the bracelets. Imperial Jewelers has determined that $6.00 of the manufocturing overhead is variable with respect to the number of bracelets produced. 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