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* Chrome File Edit View History Bookmarks People window Help D Sun 1:59 PM a B Garrison CH 12 Exercises C Chegg Study Guide CO ezto.mheducation.comhm.tpx healthy food trips ACC 1005: Fall 2017 ACCT 1005 Garrison CH12 Exercises instructions help Untitled Screen Shot 2017-.41 PM C | Question 4 (of 7) So we & Exit submit omework 20 PM AcCT 1005 Screen shot Schedule 2015-0.9.37 PM 4.28 points Imperial Jewelers is considering a special order for 14 handcrafted gold bracelets to be given as gifts to members of a wedding party, the normal selling price of a gold bracelet is $406.00 and its unit product cost is $259.00 as shown below: Screen Shot MGT 2000 2015-0...3.09 AM Syllabu...017.pdf $ 144 ILL ASKED BOOKMARKED Direct materials Direct labor Manufacturing overhead Unit product cost $ 259 Screen Shot 2015-0...7.55 PM 10:58 am WirelessDiagnos tics Co...3.targz E 10:55 am Screen Shot 2017-0...5.55 PM Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period . However, $14 of the overhead is variable with respect to the number of bracelets produced. The customer who is interested in the special bracelet order would like special filigree applied to the bracelets, This filigree would require additional materials costing $13 per bracelet and would also require acquisition of a special tool costing $469 that would have no other use once the special order is completed. This order would have no effect on the company's regular sales and the order could be fulfilled using the company's existing capacity without affecting any other order. 10:52 am Screen Sho 2017-1...4.30 PM B47 am Required ; what effect would accepting this order have on the company's net operating income if a special price of $366.00 per bracelet is offered for this order (Enter all amounts as positive values.) hecklist.pdf 8:41 am Per Unit Total 14 ED Bracelets n Shot 2124 PM Screen Shot Screen Shot 2017-1... 4.45 AM 2017-1.4.54 PM Incremental revenue 8:39 am 1999 GB 51E S 1 EP® is TODAQ : P) CHILLEL IT )Explanation / Answer
Per unit Total 14 Incremental revenue 366 5124 Incremental costs: Variable costs: Direct materials 144 2016 Direct labor 80 1120 Variable manufacturing overhead 14 196 Special filigree 13 182 Total variable cost 251 3514 Fixed costs: Purchase of Special tool 469 Total incremental cost 3983 Incremental net operating income(loss) 1141 Yes order should be accepted
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