hm.tpx and its unit product cost is $149.00 as shown below Direct labor Manufact

Question

hm.tpx and its unit product cost is $149.00 as shown below Direct labor Manufacturing overhead Unit product cost S 84.00 45.00 2000 S 149 00 to Most of the manufacturing the number of bracelets produced. The customer who is interested in the special bracelet order would lke special filigree appied to the bracelets. This fligree would require additional materials costing $2.00 per bracelet and would also require acquisition of a special tool costing $250 that would have no other use once the special order is have no effect on the company's regular sales and the order couild be fuifilled using the company's existing capacity without affecting any other order This order would values. Round your answers to 2 decimal places.) I costs

Explanation / Answer

1). The incremental cost is computed as follows :-

Incremental Net Operating Income :-

2). Yes, The special order accepte at that price. Because Incremental Net Operating Income from Special Order

is $449.

Particulars Cost per unit Total Cost of 20 Bracelets Variable Cost :- Direct Materials $84 $1680 Direct Labor $45 $900 Variable Manufacturing Overhead $4 $80 Additional Modifiaction material $2 $40 Total Variable Cost (A) $135 $2700 Fixed Cost :- Special Tool Cost $250 Total Fixed Cost (B) $250 Total Incremental Cost (A+B) $2950

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