Exerclse 13-4 (Algo) Speclal Order Decision -LO13-4- Imperial Jewelers.pdf
Exerclse 13-4 (Algo) Speclal Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $401.00 . The compary's accounting system says that the unit product cost for this bracelet 1 s $275.00 as shown below. The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted pri of $361.00 each. The members of the wedding party would like special fillgree applied to the bracelets that would increase the direc materials cost per bracelet by $8 . Imperial Jewelers would also have to buy a special tool for $464 to apply the filigree to the bracelets. The speclal tool would have no other use once the speclal 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 jeweiry is produced in any given period. However, $9.00 of the overhead is variable with respe to the number of bracelets produced. The company also belleves that accepting this order would have no effect on its ability to produce and sell Jewelry to other customers. Furthermore, the compary could fulfill the wedding party's order using its existing manufacturlng 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? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Complete this question by entering your answers in the tabs below. Should the company accept the special order?.
Exerclse 13-4 (Algo) Speclal Order Decision -LO13-4- Imperial Jewelers.pdf
Exerclse 13-4 (Algo) Speclal Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $401.00 . The compary's accounting system says that the unit product cost for this bracelet 1 s $275.00 as shown below. The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted pri of $361.00 each. The members of the wedding party would like special fillgree applied to the bracelets that would increase the direc materials cost per bracelet by $8 . Imperial Jewelers would also have to buy a special tool for $464 to apply the filigree to the bracelets. The speclal tool would have no other use once the speclal 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 jeweiry is produced in any given period. However, $9.00 of the overhead is variable with respe to the number of bracelets produced. The company also belleves that accepting this order would have no effect on its ability to produce and sell Jewelry to other customers. Furthermore, the compary could fulfill the wedding party's order using its existing manufacturlng 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? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Complete this question by entering your answers in the tabs below. Should the company accept the special order?.
![Exerclse 13-4 (Algo) Speclal Order Decision [LO13-4] Imperial Jewelers manufactures and sells
a gold bracelet for $401.00 . The compary's accounting system says that the unit product cost for
this bracelet 1 s $275.00 as shown below. The members of a wedding party have approached
Imperial Jewelers about buying 29 of these gold bracelets for the discounted pri of $361.00 each.
The members of the wedding party would like special fillgree applied to the bracelets that would
increase the direc materials cost per bracelet by $8 . Imperial Jewelers would also have to buy a
special tool for $464 to apply the filigree to the bracelets. The speclal tool would have no other
use once the speclal 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 jeweiry is produced in any given period. However, $9.00 of the overhead
is variable with respe to the number of bracelets produced. The company also belleves that
accepting this order would have no effect on its ability to produce and sell Jewelry to other
customers. Furthermore, the compary could fulfill the wedding party's order using its existing
manufacturlng 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? Complete this question by entering your answers in the tabs below. What is the financial
advantage (disadvantage) of accepting the special order from the wedding party? Complete this
question by entering your answers in the tabs below. Should the company accept the special
order?](https://image.slidesharecdn.com/exerclse13-4algospeclalorderdecision-lo13-4-imperialjewelers-230312121951-309919f4/75/exerclse-134-algo-speclal-order-decision-lo134-imperial-jewelerspdf-1-2048.jpg?cb=1678624161)
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Exerclse 13-4 (Algo) Speclal Order Decision -LO13-4- Imperial Jewelers.pdf
- 1. Exerclse 13-4 (Algo) Speclal Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $401.00 . The compary's accounting system says that the unit product cost for this bracelet 1 s $275.00 as shown below. The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted pri of $361.00 each. The members of the wedding party would like special fillgree applied to the bracelets that would increase the direc materials cost per bracelet by $8 . Imperial Jewelers would also have to buy a special tool for $464 to apply the filigree to the bracelets. The speclal tool would have no other use once the speclal 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 jeweiry is produced in any given period. However, $9.00 of the overhead is variable with respe to the number of bracelets produced. The company also belleves that accepting this order would have no effect on its ability to produce and sell Jewelry to other customers. Furthermore, the compary could fulfill the wedding party's order using its existing manufacturlng 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? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Complete this question by entering your answers in the tabs below. Should the company accept the special order?