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Imperial Jewelers manufactures and sells a gold bracelet for $ 4 0 1 . 0 0 . The company's accounting system says that the unit
Imperial Jewelers manufactures and sells a gold bracelet for $ The company's accounting system says that the unit product cost for this bracelet is $ as shown below:
tableDirect naterials,$
To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is sied and unaffected by variations in how much jewelry is produced in any given period. However, $ of the ovethead 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 fulfill the wedding party's order using its existing manufacturing capacity.
Required:
What is the financial advantage disadvantage of accepting the special order from the wedding party?
Should the company accept the special order?
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