Imperlal Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet Is $268.00 as shown below: Direct materials $142...


Imperlal Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product<br>cost for this bracelet Is $268.00 as shown below:<br>Direct materials<br>$142<br>Direct labor<br>86<br>Manufacturing overhead<br>40<br>Unit product cost<br>$268<br>The members of a wedding party have approached Imperlal Jewelers about buylng 27 of these gold bracelets for the discounted price<br>of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial<br>Jewelers to buy a special tool for $451 and that would Increase the direct materials cost per bracelet by $6. The special tool would<br>have no other use once the special order is completed.<br>To analyze this special order opportunity, Imperial Jewelers has determined that most of Its manufacturing overhead is fixed and<br>unaffected by varlations In how much jewelry is produced in any glven perlod. However, $7.00 of the overhead Is varlable with respect<br>to the number of bracelets produced. The company also belleves that accepting this order would have no effect on its ability to<br>produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using Its existing<br>manufacturing capacity.<br>Requlred:<br>1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party?<br>2. Should the company accept the special order?<br>Complete this question by entering your answers in the tabs below.<br>Required 1<br>Required 2<br>What is the financial advantage (disadvantage) of accepting the special order from the wedding party?<br>

Extracted text: Imperlal Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet Is $268.00 as shown below: Direct materials $142 Direct labor 86 Manufacturing overhead 40 Unit product cost $268 The members of a wedding party have approached Imperlal Jewelers about buylng 27 of these gold bracelets for the discounted price of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $451 and that would Increase the direct materials cost per bracelet by $6. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of Its manufacturing overhead is fixed and unaffected by varlations In how much jewelry is produced in any glven perlod. However, $7.00 of the overhead Is varlable with respect to the number of bracelets produced. The company also belleves that 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 Its existing manufacturing capacity. Requlred: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party?
Jun 09, 2022
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