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Imperlal Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting system says the unlt product cost for this bracelet is $269.00, as
Imperlal Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting system says the unlt product cost for this bracelet is $269.00, as shown below: A wedding party has approached Imperlal Jewelers about buylng 24 gold bracelets for the discounted price of $365.00 each. The wedding party would like special fillgree applied to the bracelets that would increase the direct materlals cost per bracelet by $13. Imperlal Jewelers would have to buy a speclal tool for $468 to apply the fillgree to the bracelets. The speclal tool would have no other use once the speclal order is completed. To analyze this speclal order, Imperlal Jewelers determined most of Its manufacturing overhead is fixed and unaffected by varlations in how much Jewelry is produced in any given perlod. However, $14.00 of the overhead is varlable with respect to the number of bracelets produced. The company also belleves 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 existing manufacturing capacity. Requlred: 1. What is the financlal advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the speclal 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? Imperlal Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting system says the unlt product cost for this bracelet is $269.00, as shown below: A wedding party has approached Imperlal Jewelers about buylng 24 gold bracelets for the discounted price of $365.00 each. The wedding party would like special fillgree applied to the bracelets that would Increase the direct materlals cost per bracelet by $13. Imperlal Jewelers would have to buy a speclal tool for $468 to apply the fillgree to the bracelets. The speclal tool would have no other use once the special order is completed. To analyze this special order, Imperlal Jewelers determined most of Its manufacturing overhead is fixed and unaffected by varlations in how much jewelry is produced in any given perlod. However, $14.00 of the overhead is varlable with respect to the number of bracelets produced. The company also belleves 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 existing manufacturing capacity. Required: 1. What is the financlal advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the speclal order? Complete this question by entering your answers in the tabs below. Should the company accept the special order
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