Question: check photo Help Save Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says the unit Product cost for Direct

check photo
Help Save Imperial Jewelers manufactures and sells a gold bracelet for $403.00.

Help Save Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says the unit Product cost for Direct tabo < Manufactrihg; overhead Unit produCt cost $ 144 80 37 $ 261 0k nt ences A wedding party has approached Imperial Jewelers about buying 22 gold bracelets for the discounted price of$363.OO each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $7. Imperial Jewelers would have to buy a speqial tool for $461 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes accepting this order would have no effect on its ability to produce and selijewelry to other customers. Furthermore, the company could fulfill the wedding party's order using existing manufacturing capacitye Required: 1. What is the financial advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. inancial advantage Next >

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