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Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system siays the unit product cost for this bracelet is $266.00, as
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system siays the unit product cost for this bracelet is $266.00, as shown below: A wedding party has approuched Imperial Jewelers about buying 28 gold bracelets for the discounted price of $368.00 each. The wedding party would like special tiligree applied to the bracelets that would increase the direct mateilals cost per bracelet by $11. imperial Jewelers would have to biy a special tool for $465 to apply the filigree to the bracelets. The special fool would have no other use once the special order is completed. To anatyze this spectat order, imperiat Jevelers determined most of its manulacturing overhead is fixed and unaffected by variations in how much jeweliy is produced in any glven petiod. However, $1200 of the oveithead is variable with respect to the number of bracelets produced. The company also betieves accepting this order would have no effect on its ability to produce and-self fewpelry to other customers. Furthermore, the company could fuffilt the wedding party's order using existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the wedding party's special order? 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 wedding party's special order? 1. What is the financial advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Should the company accept the special order
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