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Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a wedding. The gold bracelets aee tr bee trwets as gifts to
Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a wedding. The gold bracelets aee tr bee trwets as gifts to members of the wedding party. The normal selling price of a gold bracelet in $19150 and its imit profuct conts 517200 , as shown. The manufacturing overhead is largely fixed and unaffected by varations in how much jewellery is prodaced in ary 0 owen penod However, 20% of the overhead is variable with respect to the number of bracelets prodiced The customer interestrd in the special bracelet order would like special filigree applied to the bracelets. This would iequire addotonal matemahs coting $650 pri bracee and would also require acquisition of a special tool costing $370 that would have no other use once the special order wat contelewd This order would have no effect on the company's regular sales, and the order could be fulfiled using the company's exasing capacity What effect would accepting this order have on the company's net operating income if a spechat price of 517150 is oftered per without affecting any other order bracelet for this order
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