Emperial 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 $264.00 as shown below: Direct materials $ 143
Direct labor 90
Manufacturing overhead 31
Unit product cost $ 264
The members of a wedding party have approached Imperial Jewelers about buying 28 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 Jewelers to buy a special tool for $456 and that would increase the direct materials cost per bracelet by $11. The special tool would have no other use once the special order is completed.
To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.
Required:
1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party?
2. Should the company accept the special order?

Answer and Explanation:

1. The computation of the financial advantage or disadvantage is shown below:

Estimated demand                 28 units

Particulars                  Per unit              Total

Sales revenue           $370                  $10,360

Less: Variable cost

Direct material

($143 + $11)               $154                  -$4,312    

Direct labor               $90                   -$2,520

Variable Manufacturing

overhead                   $7                     -$196

Total variable cost     $251                 ($7,028)

Contribution margin  $119                  $3,332

Less: Additional cost                         -$456

Net income or loss                             $2,876

2. Since there is a net income of $2,876 so the special order should be accepted.

answer; i believe the correct answer is (a) motion for change of venue;

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: