Imperial Jewelers is considering a special order for 20 handcrafted gold bracele

Question

Imperial Jewelers is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wadding party. The normal selling price of a gold bracelot is $189.9 and its unit product cost is $149.00 as shown below $ 84.00 Direct labor Manufacturing overhead Unit product cost 45.00 20.00 S 149.00 Most of the manufacturing overhead is fixed and unaffected by varations in how much jewelry is produced in any given period. However, $4.00 of the overhead is variable with respect to the number of braceliets produced. The customer who is interested in the special bracelet order would like special filigree applied to the bracelets. This figree would require additional materials costing $2.00 per bracelet and would aiso require acquisition of a special tool costing $25D that would have no other use once the special order is completed. This order would have no effect on the company's regular sales and the order could be fulfilled using the company's existing capacity without afecting any oher order Required: 1. What effect wou a a ng thison er have on the compiny's net operating ncome values. Round your answers to 2 decimal places. a special price asi 69 95 per bracelet is ered for this Oder? Enter all amounts as positive Per Unit Total for 20 Braceiets Incremental costs Variable costs Drect materials Direct iabor Variabie monufacturing overtead Special filgree Total variable cost Fixed costs Purchase of special tool otal incremental cost ncremental net operaing iecome

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Per unit Total for 20 Bracelet Incremental revenues                  169.95            3,399.00 Incremental costs :   Variable costs: Direct materials                     84.00            1,680.00 Direct Labour                     45.00                900.00 Variable manufacturing overhead                       4.00                  80.00 Special Filgree                       2.00                  40.00 Total Variable cost                  135.00            2,700.00 Fixed costs: Purchase of special toll                250.00 Total Incremental cost            2,950.00 Incremental net operating income                449.00

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.