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Imperial Jewelers manufactures and sells a gold bracelet for $40100. The companys accounting system says that the unit produ
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Answer #1

Requirement 1

Financial advantage $ 2,615.00

Requirement 2

Yes

The offer should be accepted

Working

Per Total 28
Unit Bracelets
Incremental revenue $      361.00 $ 10,108.00
Incremental cost:
     Variable cost
       Direct material $      150.00 $    4,200.00
       Direct labor $        88.00 $    2,464.00
       Variable manufacturing cost $          7.00 $       196.00
       Cost of special filigree $          6.00 $       168.00
     Total variable cost $      251.00 $    7,028.00
     Fixed cost:
         Purchase of special tool $       465.00
Total incremental cost $    7,493.00
Incremental net Operating income (loss) $    2,615.00
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