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Imperial Jewelers manufactures and sells a goid bracelet for $40200. The companys accounting system says that the unit product cost for this bracelet is $265.00
Imperial Jewelers manufactures and sells a goid bracelet for $40200. The companys accounting system says that the unit product cost for this bracelet is $265.00 as shown below? The members of a wedding party have approached imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $36200 each. The members of the wedding party would like special figree applied to the bracelets that would increase the direct materials cost per bracelet by $10 imperial Jewelers would also have to buy a special tool for $453 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed To ahalyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fored and unaffected by vanations in how much jewelicy is produced in any given period. However, $1100 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this oider woula have no effect on its ability to produce and sel jewely to other customers. Furthermore. the compony could futfil the wedding party's order using its exasting manulacturing capacity Required: Required: What is the financial advantage (disadvantagel of occepting the speciat orcet from the wedding party? 2. Should the company occept the specisl order? Complete this question by entering your answers in the tabs below
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