Question

Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that...

Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $269.00 as shown below: Direct materials $ 148 Direct labor 86 Manufacturing overhead 35 Unit product cost $ 269 The members of a wedding party have approached Imperial Jewelers about buying 11 of these gold bracelets for the discounted price of $364.00 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 $458 and that would increase the direct materials cost per bracelet by $9. 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?

Homework Answers

Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $268.00 as shown below: Direct materials $ 147 Direct labor 89 Manufacturing overhead 32 Unit product cost $ 268 The members of a wedding party have approached Imperial Jewelers about buying 25 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $260.00 as shown below: Direct materials $ 141 Direct labor 86 Manufacturing overhead 33 Unit product cost $ 260 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $261.00 as shown below: Direct materials $ 143 Direct labor 80 Manufacturing overhead 38 Unit product cost $ 261 The members of a wedding party have approached Imperial Jewelers about buying 20 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $262.00 as shown below: Direct materials $ 144 Direct labor 88 Manufacturing overhead 30 Unit product cost $ 262 The members of a wedding party have approached Imperial Jewelers about buying 17 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company’s accounting system says that the unit product cost for this bracelet is $262.00 as shown below: Direct materials $ 146 Direct labor 84 Manufacturing overhead 32 Unit product cost $ 262 The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $361.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company’s accounting system says that...
Imperial 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 $263.00 as shown below: Direct materials $ 143 Direct labor 89 Manufacturing overhead 31 Unit product cost $ 263 The members of a wedding party have approached Imperial Jewelers about buying 28 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...
Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company’s accounting system says that the unit product cost for this bracelet is $266.00 as shown below: Direct materials $ 145 Direct labor 86 Manufacturing overhead 35 Unit product cost $ 266 The members of a wedding party have approached Imperial Jewelers about buying 17 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company’s accounting system says that the unit product cost for this bracelet is $263.00 as shown below: Direct materials $ 144 Direct labor 84 Manufacturing overhead 35 Unit product cost $ 263 The members of a wedding party have approached Imperial Jewelers about buying 19 of these gold bracelets for the discounted price of $365.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company’s accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company’s accounting system says that the unit product cost for this bracelet is $259.00 as shown below: Direct Materials: $143 Direct Labor: 85 Manufacturing overhead: 31 Unit product cost: $259 The members of a wedding party have approached Imperial Jewelers about buying 19 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company’s accounting system says that...
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 $ 145 Direct labor 88 Manufacturing overhead 32 Unit product cost $ 265 The members of a wedding party have approached Imperial Jewelers about buying 30 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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT