Imperlal Jewelers manufactures and sells a gold bracelet for $$409\mathrm{.}00.$ The company's accountfng system says the unlt product cost for

this bracelet is $$267\mathrm{.}00,$ as shown below.

A wedding party has approached Imperlal Jewelers about buylng $20$ gold bracelets for the discounted price of $$369\mathrm{.}00$ each. The

wedding party would like speclal filigree applied to the bracelets that would increase the direct materlals cost per bracelet by $$5.$

Imperial Jewelers would have to buy a special tool for $$453$ to apply the filigree 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 period. However, $$6\mathrm{.}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:

What is the financlal advantage $($disadvantage$)$ of accepting the wedding party's speclal order?

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?