Please answer in text form without image ABC is considering a special orderfor 20 gold bracelets for a weddingparty. The usual selling price is $190and the estimated unit cost is $88 indirect materials, $45 in direct labor,and $23 in overhead. The overheadis fixed except $4 per unit. Customengraving for this order will add $2in materials per bracelet and requirerental of a specific machine for $200(no other use). There would be noeffect on other sales or customers.What is the minimum price perbracelet ABC can charge to breakeven for this special order?

The minimum price per bracelet ABC can charge to break even for this special order is determined by…

Answered: ABC is considering a special order for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company's accounting system says the unit product cost for this bracelet is $269.00, as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost A wedding party has approached Imperial Jewelers about buying 19 gold bracelets for the discounted price of $368.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $6. Imperial Jewelers would have to buy a special tool for $456 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined 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 accepting…
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company's accounting system says the unit product cost for this bracelet is $270.00, as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $ 150 84 36 $ 270 A wedding party has approached Imperial Jewelers about buying 25 gold bracelets for the discounted price of $362.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would have to buy a special tool for $458 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $6.00 of the overhead is variable with respect to the number of bracelets produced. The company also…
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Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting system says the unit product cost for this bracelet is $266.00, as shown below: Direct materials $ 149 82 Direct labor Manufacturing overhead Unit product cost 35 $ 266 es A wedding party has approached Imperial Jewelers about buying 27 gold bracelets for the discounted price of $365.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $7. Imperial Jewelers would have to buy a special tool for $457 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also…
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Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company's accounting system says that the unit product cost for this bracelet is $267.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost The members of a wedding party have approached Imperial Jewelers about buying 20 of these gold bracelets for the discounted price of $361.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $469 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. $ 150 84 33 $ 267 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, $6.00 of the overhead is variable…
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