Imperial Jewellers is considering a special order for 20 handcrafted gold bracelets for a wedding. The gold bracelets ar

[answerhappygod]

Imperial Jewellers is considering a special order for 20
handcrafted gold bracelets for a wedding. The gold bracelets are to
be given as gifts to members of the wedding party. The normal
selling price of a gold bracelet is $192.00 and its unit product
cost is $165.00, as shown: Materials $ 84.00 Direct labour 43.50
Manufacturing overhead 37.50 Unit product cost $ 165.00 The
manufacturing overhead is largely fixed and unaffected by
variations in how much jewellery is produced in any given period.
However, 20% of the overhead is variable with respect to the number
of bracelets produced. The customer interested in the special
bracelet order would like special filigree applied to the
bracelets. This would require additional materials costing $4.50
per bracelet and would also require acquisition of a special tool
costing $330 that would have no other use once the special order
was 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. What effect
would accepting this order have on the company’s net operating
income if a special price of $170.00 is offered per bracelet for
this order?