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Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The companys accounting system says that the unit prodImperial Jewelers manufactures and sells a gold bracelet for $404.00. The companys accounting system says that the unit prod

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Answer #1
Required 1 :
Sales revenue ( 13 * 364 ) 4732
(-) Costs :
Direct materials [ 13 * ( 146 + 5 ) ] 1963
Direct labor ( 13 * 88 ) 1144
Variable manufacturing overhead ( 13 * 6 ) 78
Cost of special tool 453 3638
Financial advantage 1094
Requried 2 :
Should the company accept the special order?
Answer : Yes
Reason : As this special order will increase the company's profit by $1,094
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