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helpp! 3 Imperial Jewelers manufactures and sells a gold bracelet for $40700. The company's accounting system says that the unit product cost for this bracelet
helpp!
3 Imperial Jewelers manufactures and sells a gold bracelet for $40700. The company's accounting system says that the unit product cost for this bracelet is $266.00 as shown below: 1 points woon Direct materials $ 140 Direct labor 81 Manufacturing overhead 37 Unit product cost $ 266 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $36700 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 $9. Imperial Jewelers would also have to buy a special tool for $452 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $10.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfil the wedding party's order using its existing manufacturing capacity Required: 1. What is the finartial 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. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party Step by Step Solution
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