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WILL RATE Imperial Jewelers monufactures and sells a gold brocelet for 5402.00 The company's accounting 5y tem says that the unit product cost for this
WILL RATE
Imperial Jewelers monufactures and sells a gold brocelet for 5402.00 The company's accounting 5y tem says that the unit product cost for this bracelet is $266,00 as shown beiow The members of a wedding party have approached Imperial Jewolers obout buying 24 of these gold bracelets for the discounted price of $36200 each. The members of the wedding party would like special fligree applied to the bracelets that would requre Imperia! Jeweiers to buy a special tool for $462 and that would increase the direct materials cost per bracelet by $8. The special tool would have no other use once the special order is completed To analyze this special order opportunity, Imperiol Jewolers has determined that most of its manufacturing overhead is fixed and unoffected by variations in how much jewelry is produced in any given period. However, $900 of the overhead is variable with respe to the number of bracelets produced. The compary also believes that accepting this order would have no effect on its ablity to produce and sell jeweiry to other customers Furthermote, the company could fulfill the wedding party's order using its existing manufacturing capacity Recuired: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2 Should the company accept the special order? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the 5pecial order from the wedding party Step by Step Solution
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