Imperial Jewelers mamufactures and sells a mold bracelet for 5189.95 The company" 1 acevonting systcen says that The members of a weding pary have approeched Inperat Jewelen about buying 20 of these gold bracelets for the discounted pice of 169.95 each. The members of the wedding paty would like special filigres applied is the bracelets that would increase the direct materials cost per brincelet by 52.09 . Imperial Jevelec would also live fo buy a spee ial tool for 5250 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 las deiecmined that most of its manufacturine overhead is fied and unaffected by variations in how inuch jowelry is peoduced in any given peried. However. St. 00 of the overbesd is variable with respect to the number of heacelets produced. The eompany also believes that aceepting this onder would have no effect on it ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manafactaring copacity. Required: 1. What is the financial advantage (disadvantage) of accepting tho special oeder from the wedding party?.
Imperial Jewelers mamufactures and sells a mold bracelet for 5189.95 The company" 1 acevonting systcen says that The members of a weding pary have approeched Inperat Jewelen about buying 20 of these gold bracelets for the discounted pice of 169.95 each. The members of the wedding paty would like special filigres applied is the bracelets that would increase the direct materials cost per brincelet by 52.09 . Imperial Jevelec would also live fo buy a spee ial tool for 5250 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 las deiecmined that most of its manufacturine overhead is fied and unaffected by variations in how inuch jowelry is peoduced in any given peried. However. St. 00 of the overbesd is variable with respect to the number of heacelets produced. The eompany also believes that aceepting this onder would have no effect on it ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manafactaring copacity. Required: 1. What is the financial advantage (disadvantage) of accepting tho special oeder from the wedding party?.