Managerial Accounting

Jul 4th, 2016
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Evaluating a special order (LO – 7-5) 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.

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A)Total Marginal Cost of each bracelet is:Direct materials $84.00Direct labor $45.00Variable Portion of Mfg. O/H $4.00Additional Filigree Materials $2.00Total = $135.00 per unitSales Price - Marginal Cost = $169.95 - $135.00 = $34.95$34.95 X 20 = $699.00That is the increase in Operating Inc

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