Requirement 1
Financial advantage | $ 2,976.00 |
Working
Per | Total 28 | |
Unit | Bracelets | |
Incremental revenue | $ 367.00 | $ 10,276.00 |
Incremental cost: | ||
Variable cost | ||
Direct material | $ 142.00 | $ 3,976.00 |
Direct labor | $ 85.00 | $ 2,380.00 |
Variable manufacturing cost | $ 9.00 | $ 252.00 |
Cost of special filigree | $ 8.00 | $ 224.00 |
Total variable cost | $ 244.00 | $ 6,832.00 |
Fixed cost: | ||
Purchase of special tool | $ 468.00 | |
Total incremental cost | $ 7,300.00 | |
Incremental net Operating income (loss) | $ 2,976.00 |
Requirement 2
Yes
The offer should be accepted.
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting system says that the unit product cost for this bracelet is $267.00 as shown below: Direct materials $ 149 Direct labor 82 Manufacturing overhead 36 Unit product cost $ 267 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting system says that the unit product cost for this bracelet is $271.00 as shown below: Direct materials $ 150 Direct labor 87 Manufacturing overhead 34 Unit product cost $ 271 The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that the unit product cost for this bracelet is $267.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $142 89 36 $267 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $367.00 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 $407.00. The company’s accounting system says that the unit product cost for this bracelet is $266.00 as shown below: Direct materials $ 147 Direct labor 87 Manufacturing overhead 32 Unit product cost $ 266 The members of a wedding party have approached Imperial Jewelers about buying 16 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the...
Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company's accounting system says that the unit product cost for this bracelet is $264.00 as shown below: Direct materials $141Direct labor 87 Manufacturing overhead36 Unit product cost$264 The members of a wedding party have approached Imperial Jewelers about buying 20 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special...
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 $263.00 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 26 of these gold bracelets for the discounted price of $370.00 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 $410.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 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 26 of these gold bracelets for the discounted price of $370.00 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 $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 $403.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below. Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $363.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers...
Imperial Jewelers manufactures and sells a gold bracelet for $400.00. The company's accounting system says that the unit product cost for this bracelet is $263.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $145 82 36 $263 The members of a wedding party have approached Imperial Jewelers about buying 11 of these gold bracelets for the discounted price of $360.00 each. The members of the wedding party would like special filigree applied to the bracelets that...