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QUESTION 4 (20 Marks) Scaramucci Industries Inc. is considering a special order for 20 handcrafted gold bracelets for a major upscale wedding. The goid bracelets

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QUESTION 4 (20 Marks) Scaramucci Industries Inc. is considering a special order for 20 handcrafted gold bracelets for a major upscale wedding. The goid bracelets are to be given as gifts to members of the wedding party. Ihe normal selling price of a gold bracelet is $189.95 and its unit product cost is $149, as shown: Materials Direct Labour Manufacturing Overhead Unit Product Cost $84.00 $45.00 $20.00 $149.00 The manufacturing overhead is largely fixed and unaffected by variations in how much Jewelry is produced in any given period. However, $4 of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like a special signature applied to the bracelets. This would require additional materials costing $2 per bracelet and would also require acquisition of a special tool costing $250 that would have no other use once the special order was completed. This order would have no effect on the company's Source: Adapted from Brewer et al, Introduction to Managerial Accounting, 3-5th Edition

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