Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $265.00 as shown below: Direct materials Direct labor Manufacturing overhead $ 145 87 Unit product cost 33 $265 The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $9. Imperial Jewelers would also have to buy a special tool for $468 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 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, $10.00 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 fulfill the wedding party's order using its existing manufacturing capacity. Required: 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? Required 2 > Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $265.00 as shown below: Direct materials Direct labor Manufacturing overhead $ 145 87 Unit product cost 33 $265 The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $9. Imperial Jewelers would also have to buy a special tool for $468 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 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, $10.00 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 fulfill the wedding party's order using its existing manufacturing capacity. Required: 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? Required 2 >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
You start driving east for 14 miles, turn left, and drive north for another 10 miles. At the end of driving, what is your straight line distance from your starting point? Round to the nearest tenth...
-
Inventory and receivable balances and gross profit data for Buckett Water Company follow. Instructions: Compute the following ratios for 2008 and 2007. 1. Accounts receivable turnover 2. Average...
-
Describe the basic conflict between the environmental movement and many businesses.
-
Application of data analytics Indicate which type of data analytics, 1 through 4, is described in each of the following statements describing a data analytics application, \(a\) through \(h\). Data...
-
The Pulaski Company has a line of credit with a bank under which it can borrow funds at an 8 percent interest rate. The company plans to borrow $100,000 and is required by the bank to maintain a 15...
-
Problem 6-20 (Algo) Required: Investors expect the market rate of return this year to be 18.00%. The expected rate of return on a stock with a beta of 1.7 is currently 30.60%. If the market return...
-
Problem 9-16 Problems with Profitability Index [LO1, 7] The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (0) Cash Flow (II) $-...
-
ces Fleet Street Incorporated a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (35%), skirts (40%), dresses (15%), and...
-
Given: Four particles as shown below. Find: Determine x, y, and 7 of all the particles. WA = 16 lb WB = 24 lb Wc = 14 lb W = 36 lb B 3 ft 4 ft 5 ft
-
(e) Find the principal value of sin-1 (+) (f) Find the value of a, b, c and d from the following equation: [2a + b 4 a-2b] = [11 24] 15c d 4c+3dl -
-
JBS Inc. is considering allocating a limited amount of capital investment funds among four proposals. Find below the four proposals. Year Proposal A ($) Proposal B ($) Proposal C ($) Proposal D ($) 0...
-
Apply strategic management principles to accomplish goals and objectives of hospitality operations - Define creative destruction and explain how it applies to the food service industry.Analyze an...
-
4. Write the equations for the cubic splines method for the following dataset and derive the necessary tridiagonal set of equations. Y 2.0 4.5 1.0 7. 2.0 9 1.0 12 2.0 15 0.5
-
Phosgene, COCl2, is a toxic gas used in the manufacture of urethane plastics. The gas dissociates at high temperature. At 400oC, the equilibrium constant Kc is 8.05 104. Find the percentage of...
-
Comment on whether you believe that one's personal judgment is developed by an individual through practice in everyday decision making and/or whether it is cultivated by a professional firm.
-
Cynthia Cooper details her trials and tribulations about her experiences at WorldCom in the book Extraordinary Circumstances: The Journey of a Corporate Whistleblower. The following excerpts from the...
-
What is the role of the ethical principles and standards embedded in the accounting profession's codes of ethics in making professional judgments?
Study smarter with the SolutionInn App