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Look Good Jewels (LGJ) is considering a special order for 20 handcrafted gold bracelets for a wedding. The gold bracelets are to be given as
Look Good Jewels (LGJ) is considering a special order for 20 handcrafted gold bracelets for a wedding. The gold bracelets are to be given as gifts to members of the wedding party. The normal selling price of a gold bracelet is $290.00 and its unit product cost is $212.00, as shown: The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery is produced in any given period. However, 20% of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special filigree applied to the bracelets. This would require additional materials costing $2.00 per bracelet This order would have no effect on the company's regular sales, and the order could be fulfilled using the company's existing capacity without affecting any other order. What effect would accepting this order have on the company's net operating income if a special price of $219.00 was offered per bracelet for this order? Should the special order be accepted at this price
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