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Imperial Jewelers manufactures and sells a gold bracelet for $408,00. The company's accounting system says that the unit produri cost for this bracelet is $256.00
Imperial Jewelers manufactures and sells a gold bracelet for $408,00. The company's accounting system says that the unit produri cost for this bracelet is $256.00 as shown below: The members of a wedding party have approached imperial Jewelers about buying 27 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree opplied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $456 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 defermined that most of its manufacturing overhead is floed and unaffected by voriations in how much jewelry is produced im any given period. However, $6.00 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 selljewelry to other customers. Furthermore, the company could fulfil the wedding partys order using its existing manufocturing copacity. Required: 1. Whot is the financial odvantage (disadvantage) of accepting the specal order from the wedding party? 2. Should the compary accept the speciat order? Complete this question by entering your answers in the tabs below. What is the financial advontoge (disadvantage) of accepting the specio crifer from the wedding party
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