Imperial Jewelers manufactures and sells a gold bracelet for $ The companys accounting system says that the unit product cost for this bracelet is $ as shown below:

Direct materials               $

Direct labor                        

Manufacturing overhead

Unit product cost           $

The members of a wedding party have approached Imperial Jewelers about buying of these gold bracelets for the discounted price of $ 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 $ Imperial Jewelers would also have to buy a special tool for $ 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 give ?

Answer rating: 100% (QA)

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