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Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $263.00
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: The members of a wedding party have approached Imperial Jewelers about buying 28 of these gold bracelets for the discounted price of $368.00 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 $9. Imperial Jewelers would also have to buy a special tool for $463 to apply the filigree to the bracelets. Imperial Jewelers has determined that $10.00 of the manufacturing overhead is variable with respect to the number of bracelets produced. 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. What is the financial advantage (disadvantage) of accepting the special order from the wedding party
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