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Oirestion (5): lering a special order for in handerafted gold bracefets to be aceter is szeifs 10 members of a wedding party. The normal setling
Oirestion (5): lering a special order for in handerafted gold bracefets to be aceter is szeifs 10 members of a wedding party. The normal setling price of a gold bracelet is $389,95 snd its unit product cost is $264.09 as shonn belon: Lost of the manufacturing overhead is lixed and unaffected by variations in how much elvelry is produced in any given period. However, ST of the overhead is variable with espect to the number of bracelcts produced. The customer who is interested in the peeial bracelet order would like special filigree applied to the bracelets. This riligree vould require additional materials costing 86 per bracelet and would also require cyuisition of a special tool costing $465 that would hare no other use once the special rder is completed. This order would have no effeet on the company's regular sales and liv order could be fulfilled using the compuny's existing capacity without affecting any ther order. Required: W. What effect would aceepting this urder hase on the company's net operaing income if a special price of $.79.95 is offered per brucelet for this order? Should the special order be accepted at this price
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