410-001 connect correct https r 12 Homework Imperial ewers manufactures and sels

Question

410-001 connect correct https r 12 Homework Imperial ewers manufactures and sels a ? dbracelet for S402O·The company's accortingsystem says tatthe unt product cost for thin bracelet in $268.00 as shown below $148 87 Direct materials Direct Jabor Manufacturing overhead33 Unit product cost $268 The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $36200 each. The members of the wedsing party would ike special fegree sppied to the biacelets hat would requre Imi Jevrelers to buy a special tool for $457 and thet wouild incresse the drect materials cost per bracelet by $0. The speciel tool woud have no other use once the spe0? order is completed To anslyze this special order opporturnity Imperial Jewelers thas denermined that most of its manudfacturing overhead is ficed and unaflected by variations in how much jewelry is produces in any given period However$1 00 of the ovethead is wariable wth respect tome n rber of bracelets produced The company also beleves the ecceping Pis order would h ve no ered on rs st try to produce and se,ewery to manufecturing capachy Furthermore·th, eonpary cand tanthe we00ng pat. oder useg its estano sucas , osornen , what 'a the fnancias edvantsge idssdvantaqi of accepting the special order thom the wedsing oan 2 Snouid the company accept the special order ?

Explanation / Answer

Per unit Total 26 bracelets Incremental revenue 362 9412 Incremental costs: Variable costs: Direct materials 148 3848 Direct labor 87 2262 Variable manufacturing overhead 11 286 Special filgree 10 260 Total variable cost 256 6656 Fixed costs: Purchase of special tool 457 Total Incremental costs 7113 Incremental net operating income(loss) 2299 2 Yes, accept the special order

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