Solution
Financial advantage | $ 1,545.00 |
Yes
the offer should be accepted
Working
Per | Total 20 | |
Unit | Bracelets | |
Incremental revenue | $ 364.00 | $ 7,280.00 |
Incremental cost: | ||
Variable cost | ||
Direct material | $ 149.00 | $ 2,980.00 |
Direct labor | $ 88.00 | $ 1,760.00 |
Variable manufacturing cost | $ 14.00 | $ 280.00 |
Cost of special filigree | $ 13.00 | $ 260.00 |
Total variable cost | $ 264.00 | $ 5,280.00 |
Fixed cost: | ||
Purchase of special tool | $ 455.00 | |
Total incremental cost | $ 5,735.00 | |
Incremental net Operating income (loss) | $ 1,545.00 |
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $273.00 as shown below: $146 88 Direct materials Direct labor Manufacturing overhead Unit product cost $ 273 The members of a wedding party have approached Imperial Jewelers about buying 13 of these gold bracelets for the discounted price of $364.00 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 $404.00. The company's accounting system says that the unit product cost for this bracelet is $265.00 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 21 of these gold bracelets for the discounted price of $364.00 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 $404.00. The company's accounting system says that the unit product cost for this bracelet is $258.00 as shown below: Direct materials $145 Direct labor 80 Manufacturing overhead 33 $258 Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $364.00 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 $404.00. The company's accounting system says that the unit product cost for this bracelet is $268.00 as shown below: $146 87 Direct materials Direct labor Manufacturing overhead Unit product cost 35 $ 268 The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting system says that the unit product cost for this bracelet is $257.00 as shown below: $ 140 Direct materials Direct labor Manufacturing overhead Unit product cost 3e The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $364.00 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 $404.00. The company's accounting system says that the unit product cost for this bracelet is $270.00 as shown below: $ 145 Direct materials Direct labor Manufacturing overhead Unit product cost $ 270 The members of a wedding party have approached Imperial Jewelers about buying 16 of these gold bracelets for the discounted price of $364.00 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 $404.00. The company’s accounting system says that the unit product cost for this bracelet is $268.00 as shown below: Direct materials $ 142 Direct labor 87 Manufacturing overhead 39 Unit product cost $ 268 The members of a wedding party have approached Imperial Jewelers about buying 21 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $259.00 as shown below: Direct materials $ 140 Direct labor 87 Manufacturing overhead 32 Unit product cost $ 259 The members of a wedding party have approached Imperial Jewelers about buying 11 of these gold bracelets for the discounted price of $364.00 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 $405.00. The company's accounting system says that the unit product cost for this bracelet is $255.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $143 80 32 $255 The members of a wedding party have approached Imperial Jewelers about buying 24 of these gold bracelets for the discounted price of $365.00 each. The members of the wedding party would like special filigree applied to the bracelets that...