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Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The companys accounting system says that the unit prod
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Answer #1

1.

Analysis of special order

Sales revenue (26 x 363)

9,438

Costs:

Direct material (26 x 149)

- 3,874

Direct labor (26 x 82)

- 2,132

Variable manufacturing overhead (26 x 8)

- 208

Special tool

- 465

Net income

$2,759

Financial advantage of accepting the special order from the wedding party = $2,759

2.

The company should accept the special order since it will generate an additional income of $2,759

Kindly comment if you need further assistance. Thanks

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