This paper circulates around the core theme of 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? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
EXERCISE 12–4 Evaluating a Special Order [LO4] Miyamoto Jewelers is considering a special order… 1 answer below » EXERCISE 12–4 Evaluating a Special Order [LO4] 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 $264.00 as shown below: View complete question » Direct materials. . . . . . . . . . . . . . . . . . . . $143.00 Direct labor . . . . . . . . . . . . . . . . . . . . . . . 86.00 Manufacturing overhead . . . . . . . . . . . . . 35.00 Unit product cost . . . . . . . EXERCISE 12–4 Evaluating a Special Order [LO4] 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 $264.00 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 materials 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? View less » Dec 07 2015 06:13 PM
