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Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The companys accounting system says that the unit prod
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Answer #1

1.

Per

Total 29

Unit

Bracelets

Incremental revenue

$369

$10,701 ($369*29)

Incremental costs :

Variable costs :

Direct materials

$159

$4,611 ($159*29)

Direct labor

$88

$2,552 ($88*29)

Variable manufacturing overhead

$10

$290 ($10*29)

Total variable cost

$257

$7,453

Fixed costs :

Purchase of special tool

$459

Total incremental cost

$7,912

Incremental net operating income (loss)

$2,789

2.

Yes (As there is Incremental net operating income)

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