2023 Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets to be given as | Assignments Online
2023 Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets to be given as | Assignments Online
Assignments Online 2023 Business Finance
Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $389.95 and its unit product cost is $264 as shown below.
Direct Materials ……………………………………..$143.00
Direct Labor……………………………………………. 86.00
Manufacturing Overhead……………………….. 35.00
Unit Product Cost……………………………………$264.00
Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7 of the overhead is variable with respect to the number of bracelets produced. The customer who is interested in the special bracelet order would like special filigree applied to the bracelets. This filigree would require additional material costing $6 per bracelet and would also require acquisition of a special tool costing $465 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 affecting any other order.
Required:
What effect would accepting this order have on the company’s net operating income if a special price of $349.95 is offered per bracelet for this order? Should the special order be accepted at this price?
Assignmentsonline.org help students to solve their assignment in the best possible manner. In the assignment help industry, we are regarded as one of the best helpers for students’ tasks in all subjects. We provide solutions to students from all corners of the world, but the main focus is from students residing in the US, UK, and Australia. Our primary focus is solving student assignments for all subjects and streams.
Place Order NOw
Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...
#write essay #research paper
