Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that the unit product cost for this bracelet is $264.00 as shown below: Direet materials Direct labor Manufacturing overhead Unit product coat 82 34 $ 264 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets for the discounted price of $367.00 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 $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 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, $11.00 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 fun 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 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? Financial advantage Prey 20 of 25 Next > 1 Outdoor Luggage, incorporated, makes high-end hard-sided luggage for sports equipment Data concerning three of the company's most popular models appear below. Guard Golf and Fan Belling price per unit 5.210 310 265 Variable cost per unit 70 $ 150 $ 130 plastie injection molding machine processing time required to produce one unit 10 minutes 10 minutes Pounds of plastic pellets per unit 7 pounde 16 pound 6 pounds Required: 1. we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which droduct has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1 Required Required 5 If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is eamed by each product? (Round your final answers to 2 decimal places.) Sk Guard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute Required 23 1 Outdoor Luponge, incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below duard Golded Fishing Guard Belling price per unit 210 # 310 3265 variable cost per unit 5 70 $ 150 # 130 Plastic injection molding machine processing Line required to produce one unit minutes 10 minutes 10 minute Pounds of plastic pellets per unit 7 pounds 16 pounds pounds Required: If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required Required 2 Required Required 5 Required 4 If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is eamed by each product? (Round your final answers to 2 decimal places.) Skl Guard Golf Guard Fishing Guard per pound por pound per pound Contribution margin por pound of the constrained resource
