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Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company’s accounting system says that...

Imperial Jewelers manufactures and sells a gold bracelet for $410.00. The company’s accounting system says that the unit product cost for this bracelet is $266.00 as shown below:

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Answer #1

1) Incremental analysis

Per unit Total 12
Incremental revenue 370 4440
Incremental cost
variable cost
direct material 147 1764
Direct labor 83 996
Variable manufacturing overhead 14 168
Additional material 13 156
Total variable cost 257 3084
Fixed cost
Special tool 465
Total incremental cost 3549
Financial Advantage (disadvantage) 891

Yes company should accept the special order

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