Imperial Jewelers manufactures and seils a gold bracelet for $405.00. The company's accounting system says that the unit product cost for this bracelet is $268.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $147 83 38 $268 The members of a wedding party haye approached Imperial Jewelers about buying 15 of these gold bracelets for the discounted price of $365.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $464 and that would increase the direct materials cost per bracelet by $9. The special tool would have no otheruse 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 jewlry to other customers. Furthermore, the company could fulfill the wedding ces party's order using its existing manufacturing capacity 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. Required 1Required 2 The members of a wedding party have approached Imperial Jewelers about buying 15 of these gold bracelets for the discounted price of $365.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $464 and that would increase the direct materials cost per bracelet by $9. The special tool would have no other use once the special order is completed 1.5 points To analyze this special order opportunity Imperial Jewelers has determin 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 fulll the wedding party's order using its existing manufacturing capacity d that most of its manufacturing overhead is fixed eBook Hint 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? Print Complete this question by entering your answers in the tabs below. References Required 1Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Required 2 > Manufacturing overheed38 Unit product cost $268 he members of a wedding party have approached Imperial Jewelers about buying 15 of these gold bracelets for the each. The members of the wedding party would like special filigree applied to the bracelets that would require imperial Jewelers to buy a special tool for $464 and that would increase the direct materials cost per bracelet by $9. Th e special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determind that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in variable with respect to the no effect any given period. However, $10.00 of the overhead is number of bracelets produced. The tompany also believes that accepting this order would have 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 Required: 1 What is the financial advantage (disadvantage) of accepting the special order from the wedding pa 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Requiret 2 Should the company accept the special order? OYes ONo Required 1
