1) Incremental analysis
Per unit | Total | |
Incremental revenue | 370 | 5550 |
Incremental cost | ||
variable cost | ||
Direct material | 146 | 2190 |
Direct labor | 85 | 1275 |
Variable overhead | 8 | 120 |
Additional material | 7 | 105 |
Total variable cost | 246 | 3690 |
Fixed cost | ||
Special tool | 455 | |
Incremental cost | 4145 | |
Incremental profit (loss) | 1405 |
Financial advantage = $1405
b) Yes, Accepted
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: $147 Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: $147 Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $258.00 as shown below: $145 Direct materials Direct labor Manufacturing overhead Unit product cost 30 $258 The members of a wedding party have approached Imperial Jewelers about buying 24 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $271.00 as shown below: $143 89 Direct materials Direct labor Manufacturing overhead Unit product cost 39 $ 271 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $267.00 as shown below: Direet materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company's accounting system says that the unit product cost for this bracelet is $259.00 as shown below: $145 82 Direct materials Direct labor Manufacturing overhead Unit product cost 32 $259 The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company’s accounting system says that the unit product cost for this bracelet is $266.00 as shown below: Direct materials $ 147 Direct labor 82 Manufacturing overhead 37 Unit product cost $ 266 The members of a wedding party have approached Imperial Jewelers about buying 16 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company’s accounting system says that the unit product cost for this bracelet is $260.00 as shown below: Direct materials $ 141 Direct labor 87 Manufacturing overhead 32 Unit product cost $ 260 The members of a wedding party have approached Imperial Jewelers about buying 27 of these gold bracelets for the discounted price of $370.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below Direct materials $146 Direct labor 81 Manufacturing overhead 36 $263 Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 27 of these gold bracelets for the discounted price of $361.00 each. The members of the wedding party would like special filigree applied to the bracelets that...
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says that the unit product cost for this bracelet is $268.00 as shown below: $145 Direct materials Direct labor Manufacturing overhead Unit product cost 36 $268 The members of a wedding party have approached Imperial Jewelers about buying 22 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the bracelets that would...