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

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Imperial Jewellers Is Considering A Special Order For 20 Handcrafted Gold Bracelets For A Wedding The Gold Bracelets Ar 1 (41.28 KiB) Viewed 23 times

Imperial Jewellers Is Considering A Special Order For 20 Handcrafted Gold Bracelets For A Wedding The Gold Bracelets Ar 2 (39.42 KiB) Viewed 23 times

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 $193.00 and its unit product cost is $159.50, as shown Materials Direct Labour Manufacturing overhead Unit product cout $ 1.50 41.00 17.00 5.159.50 The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery produced in any given period However, 20% of the overhead s variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special illgree applied to the bracelets. This would require additional materia costing $2.00 per bracelet and would also require acquisition of a special tool couting 5280 that would have no one use once the special order was completed This order would have no effect on the company's regular sales, and the order could be used using the company existing copacity without affecting any other order What effect would accepting this order have on the company's net operating income especial price of $159.50 18 offered per bracelet for this order? Net Dourading income
Should the special order be accepted at this price? © Yes No