The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a major upscale wedding. The gold bracelets are to be given as gifts to members of the wedding party. The normal selling price of a gold bracelet is $195.00 and its unit product cost is $161.50, as shown:
|
Imperial Jewellers is considering a special order for 30 handcrafted gold bracelets for a major upscale wedding. The gold bracelets are to be given as gifts to members of the wedding party. The normal selling price of a gold bracelet is $195.00 and its unit product cost is $161.50, as shown: |
 Â
| Â | Â | ||
|
  Materials |
$ |
89.50 |
 |
|
  Direct labour |
 |
49.00 |
 |
|
  Manufacturing overhead |
 |
23.00 |
 |
| Â | Â | Â | Â |
|
  Unit product cost |
$ |
161.50 |
 |
| Â | Â | Â | Â |
| Â | |||
Â
|
The manufacturing overhead is largely fixed and unaffected by variations in how much jewellery is produced in any given period. However, $11.50 of the overhead is variable with respect to the number of bracelets produced. The customer interested in the special bracelet order would like special filigree applied to the bracelets. This would require additional materials costing $10.00 per bracelet and would also require acquisition of a special tool costing $440 that would have no other use once the special order was 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 affecting any other order. |
 Â
|
What effect would accepting this order have on the company’s net operating income if a special price of $192.00 is offered per bracelet for this order? Net operating income increases by ________? |
Â
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â----------- Th-----------ank----------- Yo-----------u f-----------or -----------usi-----------ng -----------our----------- we-----------bsi-----------te -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n. -----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill-----------