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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 $267.00
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 $267.00 as shown below: The members of a wedding party have approached imperial Jewelers about buying 22 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding porty would like special filigree applied to the bracelets thot would increase the direct materials cost per bracelet by $8. Imperial Jewelers would also have to buy a special tool for $470 to apply the niligree 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 nxed and unaffected by variations in how much Jewelry is produced in any glven period. However, $9.00 or the overhead is varlable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ablity to produce and sell jewelry to other customers. Furthermore, the company could futril 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 occept the special order? 1. What is the financial advantage (disadvantage) of accepting the speclal 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 acceptinq the special order from the weddinq party
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