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Imperial Jewelers manufactures and selis a gold bracelet for $406.00. The company's accounting system soys the unit product cost for this bracelet is $261.00, as
Imperial Jewelers manufactures and selis a gold bracelet for $406.00. The company's accounting system soys the unit product cost for this bracelet is $261.00, as shown bolow: A wedding party has apploached imperial Jewelers about buying 25 gold bracelets for the discounted price of $366 o0 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $11 imperial Jewelers would have to buy a special tool for $451 to apply the filigree to the bracelets. The special toot would have no other use once the special order is completed To analyze this speclat order, tmperial Jewelets determined most of its manufactuting overthead is fixed and unatfected by variotions in how much jewelry is produced in any given period, However, $12.00 of the overthead is varhable whth respect to the number of bracelets produced, The compary also believes accepting this order would have no effect on its abitity to produce and sell jowelry to other customers. Furthermore, the compony could fulfil the wedding party's order using existing manufacturing capacity Required: 1. What is the financial advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. What is the frnancial advantage (disadvantage) of accepting the wedding party's special order
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