Question: Help Save & Submit 7 Exercise 11.4 Special Order Decision (LO11-4) Check my work Imperial Jewelers manufactures and sells a gold bracelet for $40400 The

 Help Save & Submit 7 Exercise 11.4 Special Order Decision (LO11-4)

Help Save & Submit 7 Exercise 11.4 Special Order Decision (LO11-4) Check my work Imperial Jewelers manufactures and sells a gold bracelet for $40400 The company's accounting system says that the unit product cost for this bracelet is $26400 as shown below 125 Direct materials Direct labor Nastaturing what it prodhues com 1264 The members of a wedding party have approached Imperial Jewelers about buying 25 of these gold bracelets for the discounted price of 536400 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 5468 and that would increase the direct materials cost per bracelet by $5. 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 variations in how much jewelry is produced in any given period. However, 56 00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fill the wedding party's order using its existing manufacturing capacity Required: 1. What is the financial advantage advantage of accepting the special order from the wedding party? 2. Should the company accept the special order? Comnate the minn hanterinnenwere in the sheh ma

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