Imperial Jewelers manufactures and sells a gold bracelet for $40200. 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 5143 155 31 5259 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 require Imperial Jewelers to buy a special tool for $470 and that would increase the direct materials cost per bracelet by $11. 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 $12.00 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 ta produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using it 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. Regulia Required what in the financial advantage (disadvantage of accepting the special order from the wedding party? Exercise 11-3 Make or Buy Decision [LO11-3] Troy Engines lid manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors An outside supplier has offered to sell one type of carburetor to Troy Engines Ltd for a cost of $39 per unil To evaluate this offer. Troy Engines Ltd has gathered the following information relating to its own cost of producing the carburetor internally Direct naterials Diret labor Variable unufacturing overhead Finur acting overhead traceable Xud manufacturing overhead, allocated Total cost 24 LIS Year 18 320.000 22 231.000 3 6000 6,00 126,00 $415, One third supervisory salanes, two this depreciation of special equipment (no resale values Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage disadvantage of buying 21000 carburetors from the outside supplier 2. Should the outside suppliers offer be accepted 3 Suppose that in the carburetors were purchased, Troy Engines, Lia could use the freed capacity to launch a new product The segment margin of the new product would be $210.000 per year Given this new assumption, what would be the financial advantage (csadvantage of buying 21000 Carburetors from the outside supplier 4. Given the new assumption in requirement should the outside suppler's offer be accepta Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Hered Assuring the company has no alternative use for the facilities that are now being used to produce the abur to what would be the financial advantage (disadvantage of buying 21.000 carburetors from the coutside suppe Fancal disadvantage Troy Engines, Ltd manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, lid for a cost of $39 per unit. To evaluate this offer, Troy Engines, Ltd. has gathered the following information relating to its own cost of producing the carburetor internally: Direct water Direct Labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total Co 11,000 units O pe Year $185 320,000 231, 3 63.co . 120.00 $415 061, "One-third supervisory salaries two-thirds depreciation of special equipment (no resale value) Required: Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage of buying 21000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines Ltd, could use the freed capacity to launch a new product. The segment margin of the new product would be $210,000 per year. Given this new assumption, what would be the financial advantage (disadvantage of buying 21000 carburetors from the outside supplier 4 Given the new assumption in requirement 3. should the outude suppliers offer be accepted Complete this question by entering your answers in the tabs below Red 1 Pred 2 Required E Pingut Suppone that if the Carburetors were purchased, Tray Engines, Ltd. could use the freed capacity to launch new product. The segment margin of the new product would be $210,000 per year Cven this new assumption, what would be the handal advantage (disadvantage) of buying 21,000 carburetors from the outside supplier Financial advantage